Market Updates

• Yields declined over the week with the two-year Treasury note falling by 41 basis points to 4.55% while the five-year note decreased by 36 basis points to 4.13%.

• Inflation continues to abate as the personal consumption expenditure went unchanged in October and advanced by 3.0% over the trailing 12 months while the closely Fed followed core PCE advanced by 0.2% and 3.5%, respectively.

• Personal spending advanced by 0.2% in October while September was revised downward from 0.4% to 0.3% as consumers slowed their pace of spending relative to the rapid pace experienced over the third quarter.

• The Fed meets next Wednesday and with a high conviction of leaving rates unchanged, market participants will focus their attention on the latest set of the Fed’s Summary of Economic Projections.