Personal Income and Outlays
We had two pieces of data posted this morning, one of which was much more important to the markets than the other. First was May’s Personal Income and Outlays data at 8:30 AM ET that showed a 0.5% rise in income and a 0.2% increase in spending. The income reading pegged forecasts, but spending fell short of the 0.5% rise that was expected. Since softer spending usually translates into slower economic growth, we can consider that portion of the report as favorable for bonds and mortgage rates.