GDP Sinks -32.9%
Germany GDP accelerated the sell off last night
It did beat expectations (-34.5) and we must congratulate AtlantaFed GDPnow who after much criticism must have changed their model because it was always way off but this time they were indicating a -32.1% well done. As far as price inflation:
GDP price index fell 1.8% in 2Q after rising 1.4% Q1
Core PCE q/q fell -1.1% in 2Q after rising 1.6% in Q1
However it wasn’t US GDP that spurred equities, metals, energy and FX weakness as that number was already built in, but rather German GDP last night, couple of charts thanks to HolgerZ on Twitter:
Staying with Germany and for those that think US 10yr yields can’t possibly move lower, well, take a look at the Germany 10Y yields chart, yea that is a negative yield:
