U.S. GDP up 1.3% in second quarter from weak Q1
Gross domestic product expanded at a 1.3% annual rate in the second quarter, the Commerce Department said, after a downwardly revised 0.4% gain in the January-March quarter. Economists had forecast GDP growing at a 1.6% rate in the second quarter from a previously estimated 1.9% rate in the first quarter. This was the weakest six months period since the recovery began in the second quarter of 2009....MOREThat 'buy treasuries' 'sell high yield' spread is looking better with the supply of government debt looking to stall and the risk of junk bond default rising should the issuers face tough economic times.
In late premarket action the iShares Barclays 20+ Yr Treas.Bond ETF is up 8/10% ($0.80) while the SPDR Lehman High Yield Bond ETF is off .37%.
See also Tuesday's "Time to Attempt the Reverse Long Term Capital Management: Long Treasuries/Short Junk? (TLT; TMF; HYG; JNK)".
