Market Updates

• Yields ended the week higher with the two-year Treasury note rising by 25 basis points to 4.03% while the five-year note increased by 17 basis points to 3.58%

• Personal consumption advanced by 0.3% in February as the consumer continues to open their wallets, however, the entire advance and more was compromised by higher prices as real consumption retreated by 0.1%

• The personal consumption deflator moderated slightly in February advancing by 0.3% which marks progress, however the rate of change in price levels is still far too fast for the Fed to draw any comfort

• The disinflationary path continues to be bumpy as the Fed’s “super core” inflation reading, which isolates sticky service industry prices primarily driven by wages, advanced in February by a robust 4.6% over the trailing year, up from 4.2% in January