Last quarter’s GDP was released this morning showing a 1.4% growth rate for the most recent rolling 12 months.  That’s one tick up from the previous +1.3% reading.  It’s well under the 2.0% line in the sand that the Fed has drawn, so even though it has increased this quarter, it’s well below our critical threshold.  The data was perceived as bond-friendly and MBS have earned back yesterday’s losses with investors hedging against today’s report.

Tomorrow’s PCE is expected to be published 1/5% lower than last month at a +2.6% YOY increase.