U.S. Dec personal spending fell -0.5%, weaker than expectations of -0.3% and the biggest decline in 9-1/4 years. Jan personal income unexpectedly fell -0.1%, weaker than expectations of +0.3% and the first decline in 3 years.
The U.S. Feb ISM manufacturing index fell -2.4 to 54.2, weaker than expectations of -0.8 to 55.8 and the slowest pace of expansion in 2-1/4 years. The Feb ISM prices paid unexpectedly fell -0.2 to 49.4, weaker than expectations of +2.2 to 51.8 and the steepest pace of contraction in 3 years.
The University of Michigan U.S. Feb consumer sentiment unexpectedly fell -1.7 to 93.8, weaker than expectations of +0.4 to 95.9.
Stock Market --The S&P 500 on Friday closed higher: S&P 500 +0.69%, Dow Jones +0.43%, Nasdaq 100 +0.77%. Bullish factors included (1) carry-over support from a sharp rally in Chinese stocks after the China Feb Caixin manufacturing PMI rose +1.6 to 49.8, stronger than expectations of +0.2 to 48.5, and (2) optimism that China and the U.S. were close to signing a new trade accord after a report said U.S. officials are preparing a final trade deal that U.S. President Trump and Chinese President Xi Jinping could sign in weeks. A bearish factor was the -2.4 point fall in the U.S. Feb ISM manufacturing index to 54.2, weaker than expectations of -0.8 to 55.8 and the slowest pace of expansion in 2-1/4 years.
Interest Rates — Jun 10-year T-notes on Friday tumbled to a 1-month low and closed lower: TYH9 -11.50, FVH9 -7.75. Bearish factors included (1) the rally in global stock markets on optimism the U.S. and China were close to a trade deal, which curbed safe-haven demand for T-notes, and (2) increased inflation expectations after the 10-year T-note breakeven inflation rate rose to a 2-3/4 month high.
( Читать дальше