US Q1 GDP (third reading) -0.2% vs -0.2% expected

The third look at the first quarter:

• The first reading was +0.2% compared to 1.0% expected
• Second reading was -0.7%
• Personal consumption 2.1% vs 1.9% exp
• GDP price index 0.0% vs -0.1% exp
• Core PCE q/q +0.8% vs +0.8% exp
• Inventories added 0.45 pp to GDP vs 0.33 pp previously

The better pace of consumer spending (2.1% vs 1.8%) accounted for much of the revision.

The first reading on Q2 GDP is due July 30 and is currently expected around 2.0-2.5%.

The US dollar is slightly stronger on the data but a bid is coming into the Treasury market and that could hurt USD. Ten-year Treasury yields are down nearly 3.4 bps to 2.37%.