Bond Market Update

Data Recon

• Personal income increased 0.3% month-over-month in November (Briefing.com consensus 0.4%) following an upwardly revised 0.7% (from 0.6%) in October. Personal spending rose 0.4% month-over-month (Briefing.com consensus 0.5%) following a downwardly revised 0.3% increase (from 0.4%) in October. The PCE Price Index was up 0.1% month-over-month (Briefing.com consensus 0.2%); however, it ticked up to 2.4% year-over-year from 2.3% in October. The core-PCE Price Index, which excludes food and energy, also increased 0.1% month-over-month and held steady at 2.8% year-over-year.
  • The key takeaway from the report is that there wasn't any improvement in the year-over-year readings for PCE and core-PCE inflation.
• Yield Check:
  • 2-yr: -6 bps to 4.26%
  • 3-yr: -7 bps to 4.27%
  • 5-yr: -9 bps to 4.34%
  • 10-yr: -7 bps to 4.50%
  • 30-yr: -4 bps to 4.70%