A dollar bill has been sitting on my kitchen counter now for two days.  No one seems to know how it got there.  It’s got me thinking about what a dollar can buy these days and when was the last time I had a physical dollar in my pocket.  It’s been awhile.  I don’t know that I’ve carried cash since the pandemic. I’m not a germaphobe; I’m a creature of convenience and efficiency. carrying around a bunch of wadded up bills–let alone a pocket full of change–is not convenient, and the currency accrues no interest in your jeans. Don’t get me wrong, I still have a little horde of the paper presidents in my safe and more in my vacation bag, just in case.  But for the most part, I transact electronically.

I was going somewhere with this when I started writing….oh yeah, a dollar doesn’t get you much any more, which is why the solitary bill on my counter top has gone unclaimed.  Retail sales rose +0.1%, versus the expected +0.2% rise.  Retail Sales have only risen +0.3% YTD. GDP changed +0.4%, slower than the +0.5% increase anticipated.  And rents, which were up YOY 3.4% last month have slipped to a YOY +3.0% appreciation rate with this month’s reading.

These figures are bond friendly, and even though the market is closed tomorrow for Juneteenth which typically means banks would hedge by raising rates a touch, MBS are up 14 bps on the day and near the high price line for the last 75 days.  It’s a good day to lock in a loan.