University of Michigan Consumer Sentiment (Prelim)
Today’s third piece of economic data was the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. They announced a preliminary reading of 71.0 for April that was a large decline from March’s 89.1. A large decline was expected, due to the pandemic. This reading means surveyed consumers were much more concerned about their own financial situation than they were last month, which is understandable considering the unemployment numbers and how the virus has affected daily lives. By theory, this is favorable news for bonds and mortgage rates because weaker confidence usually translates into softer levels of consumer spending that fuels economic growth. In today’s case though, a large decline was expected, minimizing the impact on rates.