The King Report: Intervention Time

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Verbal intervention via leak in time to help dealers loaded with US bonds – The WSJ: Fed to Keep Lid on Bond Buys; Big Boost in Purchases Is Unlikely; Divisions Emerge Over Handling Risk of Inflation

We warned in missives this week that when bonds are tanking into an auction, dealers try to affect a rally after the last auction is completed. This occurred yesterday. Equities followed bonds higher. But in a
major surprise, stocks sold off during the last hour…Who didn’t get the Blankfein ‘no recovery’ memo?

The only reason that May Advance Retail Sales met expectations is because of inflation, principally in gasoline. FTN’s Chris Low: Four-fifths of the May increase reflected a 3.6% rise in gasoline sales caused by a price increase…food and beverage were up 0.4%. Heath and personal care rose 0.7%…

John Williams: Annual Retail Sales Plunge Worst of Post-World War II Era – May “Core” Monthly Retail Sales Gained 0.15% versus 0.46% Total – Corrected Merchandise Trade Data Added $20 Billion to 2008 Deficit

Advance Retail Sales

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The Telegraph: Oil consumption falls by the most since 1982; Global demand for oil has fallen for the first time in 15 years and by the greatest amount since 1982, according to energy giant BP. Consumption fell by 0.6pc across the world last year to 84.4m barrels per day, but the decline was especially pronounced in the US – where demand dropped by 5.4pc. ..Despite the slump in demand last year, oil prices rose above $70 per barrel for the first time in months yesterday… [inflation, not growth]

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