Personal Income and Outlays
The first of this morning’s three economic releases was September's Personal Income and Outlays report at 8:30 AM ET. It showed that income rose 0.9% while spending increased 1.4%. Both readings exceeded expectations of 0.3% and 1.0% respectively, indicating consumers had more money to spend than thought and did spend it. Because those increases are a sign of stronger economic activity, they are bad news for bonds and mortgage rates. However, a key inflation reading that the Fed relies on during their FOMC meetings matched forecasts. It is that reading that may be helping to boost bonds during early trading.