Rut roh...

[Marshal Jim Duncan]

 

[07pilt]

This seems like good news to me.

 

[Marshal Jim Duncan]

Explain why

 

[07pilt]

Explain why

It indicates either a narrowing trade deficit or a greater appetite for dollar denominated riskier assets/investments. Both good news.

 

[Marshal Jim Duncan]

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

Trade deficit up $6.5B from July.

To me it indicates softening world economies -- in China and in Russia. I don't think it is a threat to the Bond market (or rates) in the near term.

And the Chinese central bank has been buying Yuan and selling dollars since the reaction to their devaluing the Yuan.

 

[07pilt]

http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm

Trade deficit up $6.5B from July.

To me it indicates softening world economies -- in China and in Russia. I don't think it is a threat to the Bond market (or rates) in the near term.

And the Chinese central bank has been buying Yuan and selling dollars since the reaction to their devaluing the Yuan.

If the deficit is up and treasury purchases are down then those dollars have to be going somewhere.