Market Updates

• Yields were mixed during the week with the two-year Treasury note rising by one basis points to 3.13% while the five-year note fell by 8 basis points to 3.05%

• Headline CPI exceeded expectations advancing by 1.3% in June and 9.1% year over year marking the fastest yearly increase in more than four decades

• Core CPI also exceeded expectations increasing by 0.7% in June and 5.9% over the year as price increases were broadly based across goods and services

• After speculation of a 100 basis point rate hike from the Fed on the heels of the CPI report, market participants dialed back expectations and are now calling for 75 basis points after the University of Michigan consumer sentiment survey revealed softening 5-10 year inflation expectations