Source: US Dept. of Treasury End of Day
• Yields increased slightly over the week as the two-year Treasury note increased by one basis point to 0.15% while the five-year note increased by four basis points to 0.84%.
• Core CPI remained tame for the month of February posting a soft 0.1% increase while the increase over the last year fell by 0.1% to 1.3%.
• Though hard inflation data has yet to validate market expectations, the economy is poised for a mini boom as Americans continue to receive vaccines and begin collecting stimulus checks.
• As the increase in purchasing power is unleashed in the months to come, service providers will be able to regain pricing power lost in the pandemic, at which point, a transient spike in inflation will likely occur.
