Treasury Market Fluctuations, PPI Data Draws Attention👀

Treasuries took a breather yesterday as yields unwound some of their 2.5-sigma moves on Tuesday, with yields about 10bp on the day despite continued dovish US data. Retail sales came in close to consensus, falling 0.1% MoM versus an upward revision in the previous month, with weaknesses seen in auto sales and gasoline. PPI made for bigger headlines as prices fell by the most in over 2.5 years due to falls in gasoline, with a -0.5% MoM drop vs consensus expectations for a +0.1% print. Core PPI ex food, energy and trade services rose 0.1%, while final demand is still 1.3% higher than a year ago.

#YieldRates #RetailSales #PPI #GasolinePrices #CorePPI