Source: US Dept. of Treasury End of Day
• Yields were mixed as the curve slightly steepened over the week with two-year Treasury note yields falling by 4 basis points to 3.57% while five-year note yields went unchanged at 3.51%.
• The Fed favored inflation gauge, core PCE, advanced by a tepid 0.1% in August compared to an expected 0.2%, while the year over year reading ticked up to 2.7% form 2.6% in July.
• Shelter costs remain the primary culprit in the year over year acceleration of core PCE, however, economists remain optimistic that price gains for housing will slow into 2025.
• Personal incomes advanced by a slim 0.2% versus a forecasted 0.4% in August as consumers appeared to pull back, however, consumption is still on pace for a robust 3% annualized increase in Q3 in what still appears to be a healthy expansion of economic activity.
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