Market Updates

• The yield curve continued to steepen over the week as the two-year Treasury note remained constant at 0.11% while the five-year note increased by two basis points to 0.49%.

• Headline CPI fell in line with expectations posting a 0.3% uptick in January and was largely influenced by the increase in gasoline prices, Core CPI remained flat, undershooting expectations for the month and is up 1.3% over the past year.

• Inflation has continued to be a hot topic as of late and consensus expectations are for prices to see a sudden spike in early Spring—the one-year mark from when the pandemic sent demand for goods and services as well as prices, plummeting.

• The debate surrounding the American Rescue Plan continues in the halls of Congress where Democrats have the upper hand in pushing for a larger fiscal stimulus package to stoke the economy, however inflation hawks worry that a deal of such size could overheat the economy and damage growth if inflation were to remain persistently high and unchecked.