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Core PCE Deflator, Durable Goods Ahead

US DATA
  • Core PCE: BBG consensus has core PCE inflation holding at +0.5% M/M in Jan after +0.45% in Dec, with Goldman seeing +0.47% M/M.
  • Incomes/spending: nominal personal incomes are seen dipping -0.3% M/M after +0.3% in Dec, hit by the loss of child tax credits. Nominal and real spending expected to have bounced strongly, reducing the savings ratio.
  • Durable goods: Core orders are seen steady at +0.3% M/M in Jan.
  • Tsy yields sits 3-4.5bps higher across most of the curve, BBDXY -0.2% on the day.

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