Even before this morning’s spate of economic data was released, Treasury prices were staging a comeback after yesterday’s rout and today’s numbers haven’t changed that. The Ten-Year is up about a half-point in price for a yield of 1.46% while the Long Bond’s comeback of about 1 5/8 points results in a yield of 2.20%. The Two-Year is hanging around 14 basis points. Crude oil is off more than a dollar to $62.25 while gold continues its sell-off to $1,762. Equities are looking mixed.
A little earlier, the Bureau of Economic Analysis reported that Personal Income beat the expected January growth of 9.5% by coming in at 10%. December’s rise was only 0.6%. Personal Spending grew by 2.4%, just missing the estimates of 2.5%, but a whole lot better than the prior month’s decline of 0.4%. Inflation-adjusted Real Personal Spending rose by 2% and that was a little below the expectations of 2.2%. But, that again is a whole better than the prior month’s slide of 0.8%. The BEA also reported that its Personal Consumption Expenditures Index, the Fed’s preferred inflation gauge, rose by 0.3% last month and that resulted in a year-over-year pace of 1.5%. In December, the year-over-year pace was 1.3%. Without food and energy, core PCE rose by a greater-than-expected 0.3% last month and that also resulted in a year-over-year pace of 1.5%. December’s pace was revised down one-tenth to 1.4%.
A little later, Market New International will release a report for its Chicago PMI and the University of Michigan will release its February report on Consumer Sentiment.