It's a bit strange and mysterious that the bond market really didn't react to the weak GDP figures.
Is it possible that the markets baked-in their expectations?
Aside from the GDP headlines, the report's investment component was relatively strong, while the consumer exhibited the worst growth rate since Q4, 2009.
Who knows?
Actually, perhaps the markets know, because 10-year yield is unchanged at 2.31% and the ProShares UltraShort 20+ Year Treasury (NYSE:TBT) continues to hover around the 38-38.50 range, which is in the upper quadrant of the advance off of the April 18 low at 36.37.
My sense is that yield (TBT) is worried about passage of some of the Trump Growth Agenda or, put another way, how his tax reductions and spending plans will pay for the cut in revenues without ballooning the deficit?
