Stocks are higher today as investors digested the latest inflation report. Consumer price data was in line with the consensus. Following the CPI release, attention was moved to Fed speak today for any clues about the path of interest rates.
For economic data today, the Consumer Price Index fell 0.1% in Dec and prices were up 6.5% YoY, both matching expectations. It was the first monthly decline since May 2020 and the smallest annual increase since Oct 2021. Core prices rose 0.3% for the month and 5.7% YoY, also both matching expectations.
Initial jobless claims fell slightly to 205,000 last week, the lowest level in 3 months. Claims were expected to increase to 210,000 for the week. Continuing claims fell to 1.63 million.
Treasury yields are lower, with the 2-year T yield down 5.6 basis points to 4.17%, the 5-year T yield down 5.0 basis points to 3.62%, and the 10-year T yield down 0.8 basis points to 3.55%. Advance rates are lower throughout most of the curve today.