Market Update

The Core Personal Consumption Expenditure (PCE) Index--which measures price changes in consumer goods and services, minus food and energy--came in at 0.1% for August. In addition, the more closely watched year-over-year Core rate came in at 1.8%. This is welcome news, as the Fed's target zone for inflation is between 1% and 2%. The Personal Income and Spending Report was also released this morning and showed consumers are resilient with a 0.6% increase in spending, the highest monthly growth rate in three years. Bonds are showing some life after breaking above the 200-day Moving Average. For now, I recommend floating, but I am keeping a close eye on the bond, as overhead resistance is nearby.