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A Strong US Economy Generated Light Inflation For Now, as ADP Payrolls Signal Nonfarm Upside and Home Sales Surged
Ok that title won’t win any prizes, but it gets across the point. The US economy grew strongly while generating light, but slightly stronger than expected inflation as ADP payrolls ripped higher and a leading indicator of existing home sales jumped higher. Key is the strength of the consumer. Bonds didn’t like that so much at first, with the 2-year yield rising by about 5bps post-releases before moderating this response as the UK budget’s effect on gilts with some spillover effects arrived, and the US launched missile strikes on ISIS targets in Syria. The dollar strengthened and the s&p at first moved ... (full story)