Overnight 10-Year Treasuries dropped for a second straight day after economic reports out of Europe beat forecasts. Investors took this as a sign that the global economy is recovering and it damped demand for safer assets.
Treasuries are fairly unchanged after this morning’s GDP report, which showed our economy expanding at a 3.2 percent annual rate as a result of higher consumer spending. The increase was in line with forecasted expectations. Later this morning, the April consumer confidence is expected to show an improvement after last month’s big drop.
Whoever is chosen to be the next President of the United States of America today, their victory may be short lived. The “fiscal cliff” is growing near and some tough choices regarding spending and the deficit will need to be made.