In the other trade-related news today, the BLS reported a sizable dip in import prices in the month of May. Export prices fell too. From FXStreet.com:
Led by a drop in crude oil and industrial materials prices, the prices of goods imported into the United States fell 1.3% in May, the first decline since December, the Labor Department said Friday.
Imported oil prices sank 6.5%, while prices of other imports fell 0.3%. It's the first decline in non-oil import prices since October
Export prices also fell in May, dropping 0.1%. Excluding agricultural goods, export prices fell 0.4%. Import prices are up 5.7% in the past 12 months, down from the 8.7% year-over-year gain in April.
If you were looking hard, there was a little more fuel for the put-the-pressure-on-China fire:
Prices of goods imported from the European Union fell for the first time since September 2003 amid a decline in the value of the European common currency, falling 0.3%. Prices of imports from Canada fell 1.5%, marking the first drop since December.
Prices of imports from Japan were unchanged. Prices from imports from China rose for the third consecutive month, climbing 0.1%.
But:
Even so, those prices were down 0.4% in year-on-year terms, the Labor Department said.
UPDATE: The Capital Spectator speculates on what it all means for the bond market.