Source: US Dept. of Treasury End of Day
• Yields increased over the week with the two-year Treasury note rising by ten basis points to 4.61% while the five-year note increased by seven basis points to 3.92%.
• Last week’s ISM services index came in at a less than expected 50.3 but remains in expansionary territory as the economy proves resilient in the wake of stubborn inflation and a continuation of aggressive monetary policy tightening.
• May CPI is set for release tomorrow with the consensus expecting a 0.2% advance in the headline number but a stickier 0.4% expected on the core number as services, in particular housing, has been slower than expected to come down.
• A Fed decision is due out Wednesday where it is widely anticipated that they will pause their rate hiking campaign to let previous hikes permeate further into the economy, which in turn will place more emphasis on the summary of economic projections as market participants try to gain a better understanding of where the Fed believes the economy is headed.
