|10-Year: -7/32....%.... GNMAs: .... USD/JPY: 111.41.... EUR/USD: 1.2143|
-- December CPI (actual 0.1%; Briefing.com consensus 0.2%; prior 0.4%), Core CPI (actual 0.3%; Briefing.com consensus 0.2%; prior 0.1%), December Retail Sales (actual 0.4%; Briefing.com consensus 0.4%; prior 0.9%), and Retail Sales ex-auto (actual 0.4%; Briefing.com consensus 0.4%; prior 1.3%)
-- November Business Inventories (actual 0.4%; Briefing.com consensus 0.3%; prior -0.1%)
- Total business inventories increased 0.4% in November (Briefing.com consensus +0.3%) after an upwardly revised reading of unchanged (from -0.1%) for October. Total business sales increased 1.2% after an upwardly revised 0.8% increase (from 0.6%) for October.
- The key takeaway from the report is that sales growth is outpacing inventory growth, which is a step toward regaining some pricing power.
- Manufacturers' and wholesalers' inventories were known ahead of time, so the missing variable was the report on retailers' inventories, which were up 0.1% after being flat in October. Motor vehicle & parts dealers inventories were unchanged while general merchandise store inventories were down 0.1%.
- On a year-over-year basis, total business inventories are up 3.2% while total business sales are up 7.9%
- The inventories-to-sales ratio fell to 1.33 from 1.34 in October. This ratio stood at 1.40 at the same time a year ago.
- Yield check:
- 2-yr: +5 bps to 2.01%
- 5-yr: +5 bps to 2.36%
- 10-yr: +4 bps to 2.57%
- 30-yr: UNCH at 2.87%