This is somewhat lower than we had expected. It suggests that total demand, although stronger than anticipated, may not have been putting as much pressure on our economy’s production capacity as we had thought at the beginning of the year. The economic outlook Let me now shift to the Bank’s view on the outlook for the economy.
Stresses were also evident in a breakdown of the usually tight link between Treasury cash and futures prices, with the Treasury cash–futures basis—the difference between prices of Treasury futures contracts and prices of Treasury cash securities eligible for delivery into those futures contracts—widening notably.