Treasury Action: post-data swings Treasury Action: post-data swings have sent stocks and yields lower after retail sales came in just shy of median forecasts, while core PPI was above average. Those knee-jerk moves could be partly the "good is bad" view vis-a-vis the Fed, especially after the uptick in core PPI, though that makes the drop in yields harder to explain. The T-note yield reversed from 1.93% session highs to lows of 1.88%, and clearly the "whisper number" on the retail report was higher. The 2s-10s spread has narrowed 2-3 basis points to +137 bp. Look for some mean reversion after the dust settles.
Senate Commerce, Science & Transportation Committee to hold a hearing The Committee holds a hearing entitled, "Federal Aviation Administration Reauthorization" with Administrator of the FAA, Michael Huerta on April 14 at 9:30 am. Webcast Link
U.S. PPI Preview U.S. PPI Preview: March PPI data should show a 0.3% (median 0.1%) headline increase with the core figure down -0.1% (median 0.1%). This follows February figures which revealed a -0.5% headline with a matching -0.5% decline for the core that month. The leveling off in oil prices should lend some support to the report after four months of headline declines through the winter.