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BMO's Aaron Kohli said September......>

US DATA REACT
US DATA REACT: BMO's Aaron Kohli said September Core PPI "was stronger than
expected at 0.4% MoM versus 0.2% consensus, with the BLS reporting that the
storms had "virtually no impact on data collection" and most of the details of
the print broadly stronger. Food was the primary decliner in the headline print
which was in line with consensus at 0.4% MoM."
- He adds "the beat was impressive, but 'til we see some of this translating
into consumer inflation with the CPI on Friday, we're still cautious of putting
too much stock in this print."
- He adds "initial and continuing weekly jobless claims were also both better
than expected with downward revisions to prior releases (continuing claims fell
to the lowest levels since 1973)."
- "The Treasury market is selling off a bit after digesting the read, though
we'd argue that the timing of the move means its as much about a setup for the
long bond supply than a reaction to the print," Kohli said. "CPI tomorrow will
be the main attraction for the week in any event along with retail sales."

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