Source: US Dept. of Treasury End of Day
• Yields fell sharply during the week with the two-year Treasury note falling by 30 basis points to 4.43% while the five-year note decreased by 33 basis points to 3.92%.
• Behind the large move down in rates was a dovish appearing Fed at the conclusion of their meeting Wednesday and a freshly revised Summary of Economic Projections that forecast three rate cuts in 2024.
• Retail sales advanced by 0.3% in November versus an expected -0.1% as consumers reopened their wallets after October’s retracement with restaurants and bars as well as online sales leading the gains.
• Headline CPI accelerated by 0.1% in November and by 3.1% over the past 12 months while core CPI showed the disinflationary trend pausing, accelerating by a robust 0.3% and 4.0%, respectively.
