Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.383% after closing at 2.406% prior.
This morning we received the NFIB Small Business Optimism data for October, which came in slightly below expectations at 103.80 versus 104.00 per consensus. We also received the PPI Final Demand for October which rose 0.40% versus 0.10% increase per consensus, and remained unchanged from the month prior. The corePPI which excludes Food and Energy also rose 0.40% in October and remained unchanged from prior. The PPI Final Demand is now up 2.80% YoY versus 2.60% prior, and the PPI Excluding Food and Energy YoY is now up 2.40% versus 2.20% prior.
Chicago Fed President Evans spoke overnight stating that the Fed should “rethink” its policy framework and that missing their 2.00% inflation target presents a credible challenge. Moreover, St. Louis Fed President Bullard spoke this morning questioning the Fed’s decision to increase rates with inflation below their target. Later this morning at 10:05 AM (PT), Atlanta Fed President Bostic will speak on the economic outlook and monetary policy at a forum in Montgomery, Alabama.
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This morning we received the NFIB Small Business Optimism data for October, which came in slightly below expectations at 103.80 versus 104.00 per consensus. We also received the PPI Final Demand for October which rose 0.40% versus 0.10% increase per consensus, and remained unchanged from the month prior. The core PPI which excludes Food and Energy also rose 0.40% in October and remained unchanged from prior. The PPI Final Demand is now up 2.80% YoY versus 2.60% prior, and the PPI Excluding Food and Energy YoY is now up 2.40% versus 2.20% prior.
Chicago Fed President Evans spoke overnight stating that the Fed should “rethink” its policy framework and that missing their 2.00% inflation target presents a credible challenge. Moreover, St. Louis Fed President Bullard spoke this morning questioning the Fed’s decision to increase rates with inflation below their target. Later this morning at 10:05 AM (PT), Atlanta Fed President Bostic will speak on the economic outlook and monetary policy at a forum in Montgomery, Alabama.
The curve has bull-flattened with the UST 10-Year yield down 2.3 bps from prior closing.