Today's Consumer Credit was driven mostly through auto sales. The street expected a contraction of $2bn, actual was an expansion of $3bn. Total COC increased $3.3bn during the October time period and non-revolving credit grew $9.0bn. What's more, since August consumer's have accrued more credit at increasing interest rates while decreasing the loan maturity period and the Loan-To-Value Ratio. Increasing consumer confidence is helping move this indicator as well as the overall better mood being broadcast on TV news.
Consumer Credit Outstanding
Markets spiked this morning from POTUS Tax Cut announcement but receded throughout the day and sold off after 1:45. As I said in a previous post, firms need to unload positions and reduce risk at year-end and this was the catalyst today. One bond strategist quote in the Wall Street said, "You don't want to lose in December what you gained in January through November". The drop in short term and long term US Bond prices reflects investor expectations of rising yields.
Bond Yields
(click to enlarge)
