Weekly Economic Update: September 13th, 2021
• Yields increased slightly over the week as the two-year Treasury note increased by one basis point to 0.22% while the five-year note increased by three basis points to 0.81%.
• The headline producer price index rose by a record 8.3% from a year ago compared to a forecasted 8.2%, while inflation readings remain hot, the monthly gains are losing steam as month over month core PPI increased by 0.3% - the slowest increase so far this year.
• A record 10.2 million unfilled job positions in July showcases the ongoing difficulty for firms to hire leading some to argue that inflation could become stickier than previously thought if wage pressures persist.
• With the ECB announcing it will begin tapering bond purchases in the fourth quarter, investors continue to closely monitor the Fed as it is expected they will follow suit sometime in late 2021 or early 2022.