Treasuries are higher across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.282% after closing at 2.295% prior.
Personal Income decreased in June to 0.00% after a 0.30% increase (revised) in May, while Personal Spending increased by 0.10% after an upwardly revised gain of 0.20% in May. On the inflation side, the headline PCE DeflatorMoM was unchanged as expected at 0.00%, and the Core PCE Deflator MoM rose 0.10% as expected. PCE DeflatorYoY bested expectations after rising 1.40% versus a call for a 1.30% gain per consensus, and Core PCE Deflator YoY rose better than expected at a 1.50% rate versus a 1.40% increase per consensus.
We also received the July Markit US Manufacturing PMI, which came in slightly better than expected at 53.30 versus 53.20 per consensus. ISM Manufacturing dropped to 56.30 from 57.80 prior, coming in slightly below expectations. ISM Prices Paid rose 62.00 from 55.00 prior; consensus called for a 55.80 rise. Lastly, we received the Construction SpendingMoM for June, which fell 1.30% after an upwardly revised increase of 0.30% in May.
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Personal Income decreased in June to 0.00% after a 0.30% increase (revised) in May, while Personal Spending increased by 0.10% after an upwardly revised gain of 0.20% in May. On the inflation side, the headline PCE Deflator MoM was unchanged as expected at 0.00%, and the Core PCE Deflator MoM rose 0.10% as expected. PCE Deflator YoY bested expectations after rising 1.40% versus a call for a 1.30% gain per consensus, and Core PCE Deflator YoY rose better than expected at a 1.50% rate versus a 1.40% increase per consensus.
We also received the July Markit US Manufacturing PMI, which came in slightly better than expected at 53.30 versus 53.20 per consensus. ISM Manufacturing dropped to 56.30 from 57.80 prior, coming in slightly below expectations. ISM Prices Paid rose 62.00 from 55.00 prior; consensus called for a 55.80 rise. Lastly, we received the Construction Spending MoM for June, which fell 1.30% after an upwardly revised increase of 0.30% in May.
The curve has bull-flattened with the UST 10-Year down 1.3 bps from prior closing.