Market Updates

• Yields finished the week mixed with the two-year Treasury note falling by four basis points to 4.18% while the five-year note increased by two basis points to 3.56%

• The consumer appears to finally be running out of gas as retails sales contracted by a softer than expected -1.1% in December and was accompanied with a downward revision to the November report

• The producer price index fell by -0.5% echoing the weeks prior’s soft CPI report in what now appears to be a quickly abating inflationary cycle

• With labor markets beginning to show signs of weakness and inflation continuing to slow, economists and market participants expect the Federal Reserve to begin slowing the pace of policy tightening beginning with their next meeting concluding February 1st