Interest Rate Roundup

Monday, August 04, 2008

June income, spending, inflation top expectations

This week isn't a heavy one for economic data. The focus will instead be on the policy meetings that several major central banks are having. They include the U.S. Federal Reserve, the Reserve Bank of Australia, the Bank of England, and the European Central Bank. But we did get a look at June personal spending and income figures.

Spending gained 0.6%, income rose 0.1% and the core PCE price index rose 0.3%. Those figures topped the 0.4%, -0.2%, and 0.2% forecasts of economists. The overall PCE deflator was up 4.1% YOY (vs. 3.5% in May), while the core PCE index was up 2.3% YOY (vs. 2.2% a month earlier). Bonds are weaker on the news (-8/32 in price on the long bond futures as I write), while the Dollar Index is up a couple of basis points. Stock futures are at the morning's lows.


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