Core PCE, the Fed’s preferred inflation measure, came in lower than expected, up 0.3% in February vs the median forecast of 0.4%. On a y/y basis, the number ticked down slightly from last month to 4.6%. Real personal spending fell to -0.1% from an upwardly revised 1.5% in January. Yields fell after the data came out suggesting that investors think that the Fed may be near the end of it aggressive tightening.
Hafizan Hamzah
Senior Director, Investment Management Group
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