July 13, 2012

Yields remain low and flat while investors appear to be waiting for some good news.

That news didn’t come from China.  The world’s second biggest economy has slowed for the 6th consecutive quarter.  Growth in China is now pegged at 7.6%.  That’s one notch above the government’s target but below the 8% level that triggered action in the past.  The People’s Bank cut its benchmark interest rate last week, for the second time in a month.

There is no Canadian data today.

In the U.S. the Producer Price Index rose 0.1% in June, led by consumer goods such as appliances and light trucks.  The modest increase is seen as a sign that inflation is not a threat.   

And the University of Michigan’s initial read on consumer confidence for July slumped to its lowest level in 6 months, 72.0.