Market Updates

• Yields finished the week slightly lower with the 2-year Treasury note falling by three basis points to 4.27% while the 5-year Treasury note fell by one basis point to 4.33%.

• January’s CPI readings advanced faster than expected with headline CPI growth registering a monthly 0.5% and yearly 3.0% while core CPI jumped by 0.4% and 3.3%, respectively.

• While the CPI report broadly exceeded forecasts, some relief was found in January’s PPI report which was in line with expectations and showed price growth slowing for multiple components that flow into the Fed favored PCE gauge.

• Retail sales pulled back sharply in January, falling by -0.9% versus an expected -0.2% while the control group that feeds directly into GDP, contracted by -0.8% versus an expected gain of 0.3%.

• Click the link below to read more.