Source: US Dept. of Treasury End of Day
• Interest rates decreased during the week with two-year Treasury note yields falling by 5 basis points to 3.60% while five-year note yields fell by 5 basis points to 3.44%.
• Headline CPI advanced by a monthly 0.2% in August matching expectations while core CPI surprised to the upside advancing by 0.3% versus an expected 0.2%.
• Despite the unexpectedly quick advance in core prices in August, the print was largely driven by shelter, which is accompanied with long lags, and airfare where prices are not considered to be sticky.
• The Fed meets on Wednesday where it is widely expected the FOMC will lower the fed funds rate by 25 basis points.
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