Bond Market Update

Data Recon

• Personal income increased 0.2% month-over-month in August (Briefing.com consensus 0.4%) and personal spending increased 0.2% (Briefing.com consensus 0.3%). The PCE Price Index rose 0.1% month-over-month (Briefing.com consensus 0.1%) and the core-PCE Price Index, which excludes food and energy, increased 0.1% (Briefing.com consensus 0.2%). On a year-over-year basis, the PCE Price Index was up 2.2%, versus 2.5% in July, while the core-PCE Price index was up 2.7%, versus 2.6% in July.
  • The key takeaway from the report is that it shows tame inflation figures that support the Fed's progress in getting inflation back to its 2% target on a sustainable basis.
• Yield Check:
  • 2-yr: -3 bps to 3.59%
  • 3-yr: -3 bps to 3.51%
  • 5-yr: -3 bps to 3.53%
  • 10-yr: -3 bps to 3.76%
  • 30-yr: -2 bps to 4.10%