Some necessary re-balancing
The trend toward higher government bond yields that had been in vogue for much of August has reversed in recent days. This can be traced to a batch of weaker-than-expected economic data and stronger suggestions, in particular, that the US labour market is re-balancing. In our charts this week we offer some colour on:
· The re-balancing of the US labour market
· Data surprises in the US versus the euro area
· The dollar and real interest rate differentials
· Supply and demand pressures in the euro area
· Still-sticky euro area inflation
· The messages from China’s high frequency indicators
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.