Good Friday AM from your Hometown Lender,

The sun is finally shining on bonds today.

The big news today was the Fed’s favorite inflation gauge, the Core PCE Price Index. In addition, we also received the data on Personal Income and Personal Spending. All categories were weaker than expected and bonds are having a good day paring back Chairman Powell’s hawkish forecast from Wednesday’s FOMC meeting.

Not to say that all is right in the market as we are clawing back about half of what was lost but it is a win none the less and we need a win. November PCE came in at +2.4 percent year-over-year, core at +2.8 percent. Personal income and spending at +.3 and +.4 percent respectively. The 10yr is at 4.49% and mortgage bonds are +35bps.

We will take it.

Stay safe, enjoy the weekend and first, make today great!!!