Treasury prices are higher this morning as geopolitics took hold of the market’s attention. Trade tensions between China and the U.S. have picked back up as Beijing responded to the Trump administration’s newest tariff proposal with tariffs of their own. Additionally, new sanctions levied on Russia as well as the dispute between the U.S. and Turkey over the detention of an American pastor have added to the current risk-off tone in the market.

While not considered to be as important of an inflation indicator as CPI, the Producer Price Index (PPI), does provide a glimpse into the costs borne by businesses. The reading for July showed no change month over month after increasing by 0.3% in June. So far it appears that the effects of retaliatory tariffs have yet to make an impact on the cost of materials used by businesses.

Hafizan Hamzah
Director, Investment Management Group

Date TimeEventSurveyActualPriorRevised
08/07/2018JOLTS Job Openings6625666266386659
08/07/2018Consumer Credit$15.000b$10.211b$24.559b$24.259b
08/08/2018MBA Mortgage Applications-3.00%-2.60%
08/09/2018Initial Jobless Claims220k213k218k219k
08/09/2018Continuing Claims1730k1755k1724k1726k
08/09/2018PPI Final Demand MoM0.20%0.00%0.30%
08/09/2018PPI Ex Food and Energy MoM0.20%0.10%0.30%
08/09/2018PPI Ex Food, Energy, Trade MoM0.20%0.30%0.30%
08/09/2018PPI Final Demand YoY3.40%3.30%3.40%
08/09/2018PPI Ex Food and Energy YoY2.80%2.70%2.80%
08/09/2018PPI Ex Food, Energy, Trade YoY2.80%2.70%
08/09/2018Bloomberg Aug. United States Economic Survey (Table)
08/09/2018Bloomberg Consumer Comfort58.6
08/09/2018Wholesale Inventories MoM0.00%0.00%
08/09/2018Wholesale Trade Sales MoM0.20%2.50%
08/10/2018CPI MoM0.20%0.10%
08/10/2018CPI Ex Food and Energy MoM0.20%0.20%
08/10/2018CPI YoY2.90%2.90%
08/10/2018CPI Ex Food and Energy YoY2.30%2.30%
08/10/2018CPI Index NSA251.963251.989
08/10/2018CPI Core Index SA257.794257.305
08/10/2018Real Avg Weekly Earnings YoY0.20%0.50%
08/10/2018Real Avg Hourly Earning YoY0.00%
08/10/2018Monthly Budget Statement-$76.0b-$42.9b