The yield on the 10-year Treasury note last traded up 7 basis points to 2.955%, while the yield on the 30-year Treasury bond rose about 8 basis points to 3.153%. Yields move inversely to prices and 1 basis point is equal to 0.01%. Those moves followed shortly after U.S. retail sales numbers came in about as expected. Consumer spending on retail rose 0.9% in April, according to the U.S. Census Bureau. Excluding autos, retail sales rose 0.6% in April.
They are promising to get inflation under control. But given government spending, and the inevitability of government debt increasing, nothing can be assumed to be as it seems. It is reminiscent of a Greek Finance guy during their troubles almost a decade back, saying, “You don’t understand. When it is this big, you have to lie…”
Trust in hard data, not in what people say, or even what is going on in the short term.
