Leader Week in Review - June 26th, 2015
Economic Data Releases:
Early in the week, risk assets rallied on renewed hope of reaching a solution in the Greek sovereign debt drama, while Treasury yields sold off in the back half of the week. Once yields began to rise, no area in the fixed income market escaped unscathed. Even the High Yield sector, which has handily outperformed year-to-date (see table below), saw spreads widen slightly.
The consumer is finally spending again with consumption up 0.9% in May, the strongest month in six years, and up 3.6% YoY. In real terms, Consumer Spending rose 0.6% while on a YoY basis, real spending is up 3.4%. Much of the gain in real terms has been from the ongoing improvement in the labor market (see chart). With consumption accounting for the largest share of GDP, the rebound from a dismal Q1 is well underway and puts a rate hike in September firmly on the table.
Upcoming Economic Data Releases: