The bond market faces challenges due to excessive economic growth. Gross domestic product rose higher than expected at 2.4% in Q2. Consumption and corporate spending contributed, while residential construction hindered GDP growth. Inventory build played a significant role in the positive GDP number after pandemic-related supply chain issues. The report showed downward pressure on prices, with the PCE Price Index decreasing. Economic data continues to surpass expectations, indicating a strong labor market. The Bank of Japan considering yield curve control changes could impact US yields. The 7yr Treasury Auction results were slightly below forecast.

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