Morning Report: Inflation comes in lower than expected

Vital Statistics:

 

Last Change
S&P futures 2025 -14.5
Oil (WTI) 53.14 0.64
10 year government bond yield 1.70%
30 year fixed rate mortgage 3.83%

 

Slow news day.

 

Stocks are lower this morning as we round out a volatile week. Bonds and MBS are up with global sovereign yields lower across the board. The Japanese Government Bond is flirting with a record low yield at -22 basis points. Japan has about $12 trillion in government debt outstanding, which isn’t chump change – it is about 75% of the Treasuries held by the public.

 

Chaos in the Italian government pushed their yields up 26 basis points, and they now yield more than US Treasuries. Also, China reported a year on year decline in producer prices, as the country is in a bind between slowing growth and a real estate bubble.

 

Inflation at the wholesale level came in lower than expected, with the producer price index up 0.2% MOM / 1.7% YOY. Ex-food and energy, it fell 0.1% MOM and was up 2.1% YOY. Now that the Fed is in easing mode, the inflation numbers will fade in importance.

2 Responses

    • This should be nothing surprising to Tapper. Also, narcissism of small differences. There is a hair’s breadth of difference between Trump and the mainstream press. Pot, meet kettle.

      This is not an endorsement of Donald Trump’s remarkably indecorous behavior. But it’s the kind of thing the press does to him—and anybody else they don’t like—all the time.

      Like

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