In a series of recent developments, U.S. bond yields saw an uptick on Friday, September 15, 2023, following a sell-off in fixed income triggered by robust economic data from the country. This comes after retail sales exceeded expectations on Thursday, with gasoline sales significantly contributing to this surge.
Simultaneously, producer price data also met forecasts. Analysts from Mizuho have deduced that inflation-adjusted consumption appears to be growing at an annualized rate of 3.5%. This suggests that the U.S. GDP for the third quarter is likely to surpass 2.5%.
Several key indices and data releases were included in Friday's economics agenda. These encompassed the Empire State manufacturing index, industrial production statistics, and the initial release of the University of Michigan’s consumer sentiment index.
In addition to these economic developments, a symbolic event unfolded as the United Auto Workers' strike commenced at a plant of each of the three major U.S. auto companies. This development could potentially raise concerns about wage growth and its subsequent influence on inflation.
Looking ahead to next week, the financial world anticipates the Federal Open Market Committee's decision. While a rate hike seems unlikely, updates regarding economic and rate forecasts from the central bank are expected. The outcome of this meeting could further influence bond yields and market dynamics in the coming weeks.
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