Treasury Action: yields dipped only briefly Treasury Action: yields dipped only briefly following the drop in headline and core PPI, as another small drop in jobless claims from already low levels helped offset the disinflationary news. That still shows the Fed missing on its inflation mandate and making further progress on employment. The T-note yield ticked below 2.25% briefly before rebounding over 2.26%, compared to the 2.29-2.24% overnight range. The 2s-10s spread has narrowed back inside +170 bp.
Stock futures remain higher following economic reports U.S. stock futures remain higher following the release of reports on producer prices and jobless claims. The data showed that producer prices fell 0.4% versus expectations of an increase of 0.1%. Excluding food and energy, the core reading was down 0.2% versus expectations of an increase of 0.1%. The weekly jobless claims showed that there were 265,000 initial claims versus expectations of 273,000 while continuing claims came in at 2.22M versus the expected 2.23M.
House Financial Services Committee to hold a hearing The Committee holds a hearing entitled, "Protecting Consumers: Financial Data Security in the Age of Computer Hackers" with CEO Pawlenty of Financial Services Roundtable and CEO Oxman of the Electronic Transactions Association on May 14 at 10 am. Webcast Link