Recall a week or so ago the preliminary Michigan sentiment data showed a surprise decline with higher inflation:
- Consumer sentiment 67.4 versus 77.2 last month
- Expectations 66.5 versus 76.0 last month
- Current conditions 68.8 versus 79.0 last month
For the inflation readings:
- 1 year inflation expectations 3.5% versus 3.2% last month
- 5-year inflation expectation 3.1% versus 3.0% last month.
Overall the data was startling. However, it can be largely influenced by things like gasoline prices.
The current 2-year yield is at 4.948% while the 10 year yield is at 4.486% ahead of the data.