Producer Prices Rise as Jobless Claims Fall

The Bureau of Labor Statistics announced this morning that its Producer Price Index rose 0.6% last month when an increase of half that rate was expected. Year-over-year, headline PPI rose to 6.2% from 4.2% against estimates of just 5.8%. Without food and energy, core PPI notched a monthly rise of 0.7% versus an expected rise of 0.4%. Year-over-year, core PPI rose to a 4.1% pace from 3.1% against an expectation of 3.8%.

Also announced today were Initial Jobless Claims numbers for the week ending May 8th. They totaled 473k and that was less than the prior week’s upwardly revised 507k and also less than the expected 490k. Continuing Claims for the week ending May 1st fell to 3.655M from an upwardly revised 3.7M against an estimated dip to 3.65M. This afternoon, the Treasury will be selling $27B Thirty-Year bonds.

Treasury prices were already trending slightly higher before this morning’s numbers and that hasn’t changed. The Long Bond is yielding around 2.39% with the Ten-Year at 1.68% while the Two-Year sits at 16 basis points. Crude oil is off a little-more-than-a-dollar to $64.73 while gold has rallied slightly to $1,820. Equity futures are mixed.