Treasuries continued their sell off reaching yield levels not seen in over two months and the slope of the curve steepened as well, with the spread between the 2 and 10 year increasing to 86 bps. Boston Fed President Eric Rosengren added to the chorus of hawkish policymakers, emphasizing the need for gradual rate hikes as a means to guard against spikes in inflation that could halt the economic recovery.
The second revision to second quarter GDP came in slightly higher than expectations at annualized pace of 3.1% versus 3.0% and was an increase of 0.1% from the prior revision. Given the Fed’s target GDP growth of 2.4% for 2017, the second half of 2017 will have to expand at a rate of 2.6%.

Hafizan Hamzah
Director, Investment Management Group

Date TimeEvent SurveyActualPriorRevised
09/28/2017 08:30GDP Annualized QoQ2Q T3.00%3.10%3.00%
09/28/2017 08:30Personal Consumption2Q T3.30%3.30%3.30%
09/28/2017 08:30GDP Price Index2Q T1.00%1.00%1.00%
09/28/2017 08:30Core PCE QoQ2Q T0.90%0.90%0.90%
09/28/2017 08:30Initial Jobless Claims23-Sep270k272k259k260k
09/28/2017 08:30Continuing Claims16-Sep1993k1934k1980k1979k
09/28/2017 08:30Advance Goods Trade BalanceAug-$65.1b-$62.9b-$65.1b-$63.9b
09/28/2017 08:30Wholesale Inventories MoMAug P0.40%1.00%0.60%
09/28/2017 08:30Retail Inventories MoMAug0.70%-0.20%0.00%
09/28/2017 09:45Bloomberg Consumer Comfort24-Sep51.650.6
09/28/2017 11:00Kansas City Fed Manf. ActivitySep1516
09/29/2017 08:30Personal IncomeAug0.20%0.40%
09/29/2017 08:30Personal SpendingAug0.10%0.30%
09/29/2017 08:30Real Personal SpendingAug-0.10%0.20%
09/29/2017 08:30PCE Deflator MoMAug0.30%0.10%
09/29/2017 08:30PCE Deflator YoYAug1.50%1.40%
09/29/2017 08:30PCE Core MoMAug0.20%0.10%
09/29/2017 08:30PCE Core YoYAug1.40%1.40%
09/29/2017 09:45Chicago Purchasing ManagerSep58.758.9
09/29/2017 10:00U. of Mich. SentimentSep F95.395.3
09/29/2017 10:00U. of Mich. Current ConditionsSep F113.9
09/29/2017 10:00U. of Mich. ExpectationsSep F83.4
09/29/2017 10:00U. of Mich. 1 Yr InflationSep F2.70%
09/29/2017 10:00U. of Mich. 5-10 Yr InflationSep F2.60%
10/02/2017 09:45Markit US Manufacturing PMISep F53
10/02/2017 10:00ISM ManufacturingSep57.558.8
10/02/2017 10:00ISM Prices PaidSep6462
10/02/2017 10:00ISM New OrdersSep60.3
10/02/2017 10:00ISM EmploymentSep59.9
10/02/2017 10:00Construction Spending MoMAug0.40%-0.60%
10/03/2017Wards Total Vehicle SalesSep16.60m16.03m
10/03/2017Wards Domestic Vehicle SalesSep12.50m12.48m
10/04/2017 07:00MBA Mortgage Applications29-Sep-0.50%
10/04/2017 08:15ADP Employment ChangeSep150k237k
10/04/2017 09:45Markit US Services PMISep F55.1
10/04/2017 09:45Markit US Composite PMISep F54.6
10/04/2017 10:00ISM Non-Manf. CompositeSep55.455.3
10/05/2017 07:30Challenger Job Cuts YoYSep5.10%
10/05/2017 08:30Initial Jobless Claims30-Sep272k
10/05/2017 08:30Continuing Claims23-Sep1934k
10/05/2017 08:30Trade BalanceAug-$43.8b-$43.7b
10/05/2017 09:45Bloomberg Consumer Comfort1-Oct51.6
10/05/2017 10:00Factory OrdersAug0.80%-3.30%
10/05/2017 10:00Factory Orders Ex TransAug0.50%
10/05/2017 10:00Durable Goods OrdersAug F1.70%
10/05/2017 10:00Durables Ex TransportationAug F0.20%
10/05/2017 10:00Cap Goods Orders Nondef Ex AirAug F0.90%
10/05/2017 10:00Cap Goods Ship Nondef Ex AirAug F0.70%