Source: US Dept. of Treasury End of Day
• Rates moved higher over the week with the two-year Treasury note yield rising by sixteen basis points to 4.64% while the five-year note increased by fourteen basis points to 4.14%.
• The disinflationary trend that had been firmly in place through 2023 appears to be losing some momentum as headline CPI and core CPI came in hotter than expected in January advancing by 0.3% and 0.4%, respectively.
• January’s CPI readings were heavily influenced by shelter, which contributed an outsized 0.2% to the headline reading, however, other services remain elevated as service prices excluding shelter accelerated by a swift 0.6% in the month.
• Consumer demand faded in January as retail sales retreated by -0.8% versus an expected -0.2% while the control group, which feeds directly into GDP, fell by -0.4% versus an expected advance of 0.2%.
