Greece has a debt payment due at the end of the month for $1,800,000,000. Again, that’s a payment of 1.8 billion dollars. The country was to have been making weekly payments of 300M euros, but has not been able to do that, at first promising a lump sum payment at the end of the month and now negotiating with creditors for alternative repayment plans. The future direction of both Stocks and Bonds now are dependent on whether Greek officials are able to negotiate an acceptable deal.
Domestically, Personal Income rose 0.5%, while Personal Spending rose 0.9% The Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditures is at 1.2%; the Fed would like to see 2.0%. Great Expectations indeed.