Global economy on the mend

<p>Kia ora,</p><p>Welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news that is generally positive and sees good progress in mending the global economy</p><p>The <a href="https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf" target="_blank"><strong>US trade deficit</strong></a> in goods and services remained high in April but it shrank from March as exports rose and imports fell. However year-on-year it is higher and now represents a deficit over the prior twelve months of -3.5% of GDP. A year ago it was -3.0% of GDP. Neither is a severe imbalance for such a large economy.</p><p>The latest April data for job openings <a href="https://www.bls.gov/news.release/jolts.nr0.htm" target="_blank"><strong>records</strong></a> an American labour market on the rise with many more unfilled positions and a record number of positions awaiting to be filled.</p><p>The US Treasury auctioned US$66 bln in <a href="https://www.treasurydirect.gov/instit/annceresult/press/preanre/2021/R_20210608_2.pdf" target="_blank"><strong>a three year bond</strong></a> overnight, and the Fed took only $5 bln of it, a recent low. The US$58 bln available to the public was very well supported getting US$143 bln in bids. The median yield was 0.295% pa, down from the prior equivalent 0.35% pa a month ago.</p><p>Japan <a href="https://www.esri.cao.go.jp/en/sna/data/sokuhou/files/2021/qe211_2/pdf/gaiyou2112_e.pdf" target="_blank"><strong>announced</strong></a> an 'upgrade' to its Q1-2021 economic data overnight. Originally it has <a href="https://www.mfat.govt.nz/assets/Trade-General/Trade-Market-reports/Q1-Economic-Report-for-Japan-May-2021.pdf" target="_blank"><strong>reported a -5.1%</strong></a> annualised rate of shrinkage. But that has now been reduced to shrinkage at an annual rate of -3.9% as it turns out domestic demand was better than first estimated