Chillin' out till it needs to be funded
In two sequential increases of 0.4% and 0.3% the CPI caught up to a 2.9% inflation rate and the Inflation ex Food ex energy also a respectable Loch Ness monster at 2.3% as we maintain a deficit in EU imports and that from China for $3.6 bln and $19 bln respectively.
Energy jumped 3.2% in February and another 0.9% in March today, the core inflation of 2.3% ensuring there are takers for the TIPS even as the $13 bln 30 Yr auctions devolved 56% on the dealers themselves despite being a small amount, the eighth time in 8 months if memory serves me right.
the 8 categories earlier reported in CPI are no longer available from today incl sub indices on housing, transportation etc. Meanwhile Techs kept indices happy yesterday and today JP Morgan’s surprise revenues of just a shade under $30 bln should take the DJIA through to new resistance computations by the start of next week. The TIPs auction is scheduled for another negative award on Thursday next while the week begins with the Empire state srvy on Monday and Philly Fed on Thursday. Housing starts are slated for Tuesday and Existing home sales for thursday. Like the Beige Book this week, the Leading Indicators are unlikely to report other than moderate recovery sentiment in all Fed regions while the Housing Market Index might well start off the week on a negative note.