Consumer Price Index comes in a bit cool, but ...
* The overall CPI rose 0.7% in May, slightly above the 0.6% increase that was forecast. That puts year-over-year inflation at 2.7%
* The "core" CPI, which excludes things like food and energy that none of us use, of course, gained 0.1%. That was below the 0.2% increase that was forecast. But get a load of this: The three decimal place increase was +0.149%. In other words, this number was 1/10th of a basis point away from being reported in the media as 0.2%. Talk about being "cute." YOY core inflation came in at 2.2%.
* Within the report, housing inflation was 0.2%, food and beverage inflation came in at 0.3%, apparel prices dropped 0.3%, and education and communication costs rose 0.6%.
Another more current report on the economy was also released -- the June Empire State Manufacturing Index. The overall index soared to 25.8 from 8.03 in May. That was the highest reading since last June, and much better than the 11.3 reading that economists were expecting. Shipments and new orders were strong. However, the prices paid index surged to 42.55 from 34.44 in May. That was the highest reading since last August.
Also, the current account deficit rose to $192.6 billion in the first quarter from 187.9 billion in the fourth quarter of 2006. That was down from $200.6 billion a year earlier.
Still on tap: May industrial production and capacity utilization, plus international capital flows for April and University of Michigan June consumer confidence.
By the way, bonds like the news -- futures were recently up 6/32. But it certainly isn't a runaway rally yet. Ten-year yields are down about two basis points to 5.20%.