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 Time Event Survey Actual Prior Revised
08/07/2018 JOLTS Job Openings 6625 6662 6638 6659
08/07/2018 Consumer Credit $15.000b $10.211b $24.559b $24.259b
08/08/2018 MBA Mortgage Applications -3.00% -2.60%
08/09/2018 Initial Jobless Claims 220k 213k 218k 219k
08/09/2018 Continuing Claims 1730k 1755k 1724k 1726k
08/09/2018 PPI Final Demand MoM 0.20% 0.00% 0.30%
08/09/2018 PPI Ex Food and Energy MoM 0.20% 0.10% 0.30%
08/09/2018 PPI Ex Food, Energy, Trade MoM 0.20% 0.30% 0.30%
08/09/2018 PPI Final Demand YoY 3.40% 3.30% 3.40%
08/09/2018 PPI Ex Food and Energy YoY 2.80% 2.70% 2.80%
08/09/2018 PPI Ex Food, Energy, Trade YoY 2.80% 2.70%
08/09/2018 Bloomberg Aug. United States Economic Survey (Table)
08/09/2018 Bloomberg Consumer Comfort 58.6
08/09/2018 Wholesale Inventories MoM 0.00% 0.00%
08/09/2018 Wholesale Trade Sales MoM 0.20% 2.50%
08/10/2018 CPI MoM 0.20% 0.10%
08/10/2018 CPI Ex Food and Energy MoM 0.20% 0.20%
08/10/2018 CPI YoY 2.90% 2.90%
08/10/2018 CPI Ex Food and Energy YoY 2.30% 2.30%
08/10/2018 CPI Index NSA 251.963 251.989
08/10/2018 CPI Core Index SA 257.794 257.305
08/10/2018 Real Avg Weekly Earnings YoY 0.20% 0.50%
08/10/2018 Real Avg Hourly Earning YoY 0.00%
08/10/2018 Monthly Budget Statement -$76.0b -$42.9b