Rates were extremely volatile this week. In the previous few weeks rates improved on quantitative easing chatter, and then moved higher earlier this week, then improved slightly after this week’s last Treasury auction: a nice $29 billion 7yr sale yesterday. Following the better-than-expected auction traders saw buying from money managers, hedge funds, insurance companies, some
Consumer Spending
Rates continue their run down this morning on doubts about the economy and the latest inflation report confirming tame prices. Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.2% in May and 1.9% year-over-year through May. Excluding volatile oil and food costs from the readings, “Core” PCE price index was unchanged
The third of three 1Q2010 GDP readings came in today at 2.7% which makes the final reading .5% lower than the initial reading, and it’s now even more significantly lower than 4Q’s +5.6% reading. Stocks lost ground and mortgage bonds rallied on the news, which helped mortgage rates hold onto record lows. The consumer spending
Rates are slightly better today following a key inflation report this morning. Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were unchanged in April and 2% year-over-year through April. Excluding volatile oil and food costs from the readings, “Core” PCE price index was 0.1% for April and 1.2% YOY through April. The
3-Week Rate Dip Ends On China’s European Commitment After enjoying a multi-week rally that brought mortgage rates to record lows since the Greek bailout-induced stock crash May 6, mortgage bonds are down significantly today (currently -44 basis points). As of now rates are up about .125% with mortgage bond pricing suggesting worse if today’s trading
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.1% in March and 2% year-over-year through March. Excluding volatile oil and food costs from the readings, “Core” PCE price index for March was 0.1% and 1.3% YOY through March. The Fed looks closely at Core PCE excluding food and energy prices because
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.1% in March and 2% year-over-year through March. Excluding volatile oil and food costs from the readings, “Core” PCE price index for March was 0.1% and 1.3% YOY through March. The Fed looks closely at Core PCE excluding food and energy prices because
The first of three 1Q2010 GDP readings came in today at +3.2%, lower than 4Q’s +5.6% reading but still seen as a positive economic growth number, especially since consumer spending was +3.6% vs. +1.6% in 4Q. Last quarter, it became official that we’ve had two consecutive quarters of GDP growth—following four consecutive quarters of economic
The US Consumer Price Index, which measures inflation at the consumer level of the economy, was nearly flat at 0.1% in March and 2.3% year-over-year through March. Excluding volatile oil and food costs from the readings, “Core” CPI for March was unchanged and increased 1.1% YOY through March. Consumer inflation for the month is within
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were unchanged in February and 1.8% year-over-year through February. Excluding volatile oil and food costs from the readings, “Core” PCE price index for February was unchanged and 1.3% YOY through February. The Fed looks closely at Core PCE excluding food and energy prices because
The third of three 4Q09 GDP readings came in today at +5.6%, which is lower than the previous reading of +5.9%, but still a strong economic growth number, and it’s now official that we’ve had two consecutive quarters of GDP growth—following four consecutive quarters of economic contraction (a 60yr record for consecutive GDP declines). This
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.2% in January and 2.1% year-over-year through January. Excluding volatile oil and food costs from the readings, “Core” PCE price index for January was unchanged and 1.4% YOY through January. The Fed looks closely at Core PCE excluding food and energy prices because
The second of three 4Q09 GDP readings came in today at +5.9%, making a second consecutive quarter of positive GDP growth after four consecutive quarters of economic contraction (a 60yr record for consecutive GDP declines). The strong initial GDP reading was due largely to acceleration in private inventory investment, a deceleration in imports, and an
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.1% in December and 2.1% year-over-year through December. Excluding volatile oil and food costs from the readings, “Core” PCE price index for December was 0.1% and 1.5% YOY through December. The Fed looks closely at Core PCE excluding food and energy prices because
The first of three 4Q09 GDP readings came in today at +5.7%, making a second consecutive quarter of positive GDP growth after four consecutive quarters of economic contraction (a 60yr record for consecutive GDP declines). The strong initial GDP reading was due largely to acceleration in private inventory investment, a deceleration in imports, and an
Overall Personal Consumption Expenditures, the Fed’s favorite measure of consumer inflation, were 0.2% in November and 1.5% year-over-year through November. Excluding volatile oil and food costs from the readings, “Core” PCE price index for November was 0% and 1.4% YOY through November. The Fed looks closely at Core PCE excluding food and energy prices because
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