Market Commentary [09.29.2023]

Bond pricing is improved as treasury yields move downward on the latest round of PCE data. The U.S. 10 Year Treasury yield is currently 4.571%, down from the open at 4.579%. The market quickly digested the release of PCE data this morning along with personal income and spending, US trade balance in goods as well as retail and wholesale inventories.  This round of PCE data is key for the Fed’s November decision. Month over month PCE came in just below forecast at 0.4% vs 0.5% and core PCE reading 0.1% vs 0.2% forecast. Year over year PCE rose 3.5% which was inline with forecast, but slightly above the last reading at 3.4%. The cost of goods and services rose a sharp 0.4% in August, the biggest increase in seven months, primarily due to higher gas prices. Overall, it appears that inflation has continued to slow. While reassuring, the market will have to wait and see how the Fed will view the release and if they will look to raise rates one more time before the year closes out. 
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​ This week's major U.S. Economic Reports and Fed Speaker

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