Global growth lacks punch
By Nick Kalivas - Thu 13 Sep 2012 08:53:21 CT
Related Keywords: Interest Rates
The OECD released its leading economic indicators overnight.  The data can provide a glimpse of the trend in global growth.  The graphic below displays a picture of activity by major regions.  The OECD LEI is projecting sluggish growth in the U.S. with the index easing lower.  In the 5 largest Asian economies, the trend is steadily lower consistent with weakness in China and India and the apparent loss of momentum in Japan.  Like Asia, the EZ continues to sink lower.  The bright spot appears to be Brazil where the index has been trending upward.   The data tends to underscore a weak trend in global growth.  Treasury valuations reflect a weak global growth  outlook and dis-inflationary pressures. The trend in the LEI data tends to support the low rate environment.  A recovery in LEI numbers, especially in the EZ and Asia, would brighten the growth picture to the detriment of treasury prices.


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