Source: US Dept. of Treasury End of Day
• Yields finished the week lower with the two-year Treasury note falling by fourteen basis points to 4.54% while the five-year note dropped by twelve basis points to 4.16%.
• January’s PCE data came in as expected with the headline and core rates advancing by 0.3% and 0.4% respectively, however the closely Fed-followed Supercore rate, which measures price changes for services but excludes housing and energy, surged by 0.6%.
• Consumption expectedly downshifted in January as real personal spending contracted by -0.1% yet households remain equipped to spend, with personal income attributable to wages advancing by 0.4% during the month.
• Last week’s economic data ended on a somber note with survey responses from the Conference Board and the University of Michigan coming in broadly below expectations implying consumers are becoming less enthusiastic about the economy.
