Earlier JP Morgan raised their estimate to 4.0% from 2.7%
The better data has helped to send the Atlanta Fed GDPNow estimate for 2nd quarter growth to 4.8% from 4.6% last.
In their own words:
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2018 is 4.8 percent on June 14, up from 4.6 percent on June 8. After this morning's retail sales release from the U.S. Census Bureau, the nowcast of second-quarter real personal consumption expenditures growth increased from 3.4 percent to 3.6 percent.
The Atlanta Fed has been leading the way for the estimates, but earlier today, JP Morgan jumped their estimate to 4.0% from 2.7%. Not bad
Meanwhile despite the higher growth prospects, yields in the US are lower/yield curve is flatter.
The reason?
Just look at the European yields.
The German 10 year is down -5.3 bps on a more dovish Draghi (despite the taper announcement). The US 10 year is down -1.8 bps. With Germany at 0.425%, it is just hard for investors to not put money in the US at 2.945% - especially if you are foreign investor selling EURos to buy a rising USD.
