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Wednesday, December 22, 2010

Misc: Oil over $90, Bonds Sell-off in Ireland and Greece, Q3 GDP

by Calculated Risk on 12/22/2010 02:19:00 PM

• From the WSJ: Oil Passes $90 as Supplies Tighten

And from Professor Hamilton, a discussion about the impact of oil prices on economic growth from a couple weeks ago: Worrying about oil prices

• Yields are rising again in Ireland and Greece. The Ireland 10-year bond yield is up to 8.97%, the highest level since the "bailout". And the Greece 10-year bond yield is over 12% for the first time since the crisis in May. Something to watch. It seems another blowup in Europe is just around the corner.

• Q3 real GDP growth was revised up slightly to 2.6% from 2.5% (annualized rate). The key changes were that Personal consumption expenditures (PCE) growth was revised down to 2.4% from 2.8%, and changes in private inventories were estimated to contribute 1.61 percentage points to GDP growth compared to 1.30 percentage points in the 2nd estimate. This means final demand was slightly weaker than originally reported, and the increase in inventory slightly higher.