Consumer Credit Cratered in April

In a report this afternoon, the Federal Reserve announced that, in April, Consumer Credit on an annualized basis took a nosedive of almost $69B, or 19.6%. Pre-release surveys suggested a drop of just $20B. This is less surprising when one remembers that the Personal Savings Rate has skyrocketed to 33% of late. With optimism still soaring high after this morning’s surprisingly good Jobs Report, our economy still needs enthusiastic consumerism to come back along with the jobs. Will rightfully cautious consumers be slow to regain their confidence or is there really a huge backlog of pent-up demand just waiting to be unleashed? We’ll have to wait and see on that one.

For now, it looks like the Ten-Year has gained back a little ground with its yield down to around 88 basis points; down a bit from the 0.92% it traded at this morning. Crude oil is up not quite $2 to $39.27/barrel while gold has become a little tarnished at $1,683. That’s down about $30 for the day.