A better tone in risk markets overnight is pushing Treasury yields slightly higher this morning. Equity markets are responding positively to a few different items, including 1) no negative trade headlines and 2) news that the EU was able to reach a deal on migration. S&P 500 futures are currently up 10 points. On the inflation front, core PCE rose 0.2% m/m and 2% y/y in May. The monthly increase was in line with expectations, but the year-over-year metric unexpectedly rose to a 6-year high and was up 20 bps from April. Personal spending was weaker than expected in May (unchanged m/m on an inflation-adjusted basis), pushing the personal savings rate up 20 bps to 3.2%.
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