|10-Year: -6/32....%.... GNMAs: .... USD/JPY: 108.24.... EUR/USD: 1.1245|
--June PPI (Actual +0.1%, Briefing.com consensus 0.0%, Prior +0.1%)
--Core PPI for June (Actual +0.3%, Briefing.com consensus +0.2%, Prior +0.2%)
- The index for final demand increased 0.1% m/m in June (Briefing.com consensus +0.0%), held back by a 3.1% drop in the index for final demand energy, while the index for final demand, excluding food and energy, rose 0.3% m/m (Briefing.com consensus +0.2%).
- The m/m readings left the index for final demand up 1.7% yr/yr, versus 1.8% yr/yr in May. That is the lowest 12-month change since January 2017. Core PPI, however, was up 2.3% yr/yr, which was unchanged from May.
- The key takeaway from the report is that Producer Price Index for June, like the Consumer Price Index for June, didn't exactly support the case for a 50-basis points cut in July. Some might argue, too, that it didn't event support the case for a 25-basis points cut in July, yet that's almost a moot (and mute) argument given the subtext of Mr. Powell's remarks in his semiannual monetary policy testimony.
- The index for final demand services jumped 0.4% in June -- the largest increase since October 2018.
- Prices for final demand goods fell 0.4% in June, weighed down by the 3.1% decline in the index for final demand energy.
- The index for processed goods for intermediate demand declined 1.1% in June.
- The index for unprocessed goods for intermediate demand dropped 3.3% in June.
- Yield check:
- 2-yr: +2 bps to 1.87%
- 3-yr: +2 bps to 1.85%
- 5-yr: +2 bps to 1.90%
- 10-yr: +2 bps to 2.14%
- 30-yr: +3 bps to 2.67%