Source: US Dept. of Treasury End of Day
• Yields moved sharply lower during the week in with the two-year Treasury note falling by 23 basis points to 4.16% while the five-year note dropped by 25 basis points to 4.06%.
• PCE matched expectations with the headline reading accelerating from a yearly 2.1% to 2.3% while the core print also matched forecasts accelerating from 2.7% to 2.8%.
• PCE inflation for core services excluding shelter jumped by a monthly 0.4% marking the fastest pace in more than two years while prices for broad core services have accelerated for the past three months to an annualized 3.54%.
• Markets are split with a slight bias toward a 25-basis point rate cut in December, however, expectations can easily shift with the FOMC getting to digest another jobs report as well as November’s CPI inflation data prior to their December 18th meeting.
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