Daily Market Update 10/30/17

Rates inched lower Monday reflecting a rally in mortgage-backed securities late Friday.  This morning, the September core PCE price index, one of the Fed’s preferred measures of inflation, rose 0.1%, matching forecast, and was 1.3% higher year-over-year.  Personal Income increased 0.4%, in line with expectations.  No other key data will be released today.  Rates may be unusually volatile this week due to several factors.  The Federal Reserve Open Market Committee begins its periodic two-day meeting to discuss monetary policy tomorrow.  The Fed will release a policy statement on Wednesday at 2:00 PM.  President Trump may announce his nominee for the next Federal Reserve Chairman later this week.  Current Fed Chair Janet Yellen’s term expires in February 2018.  While Yellen is reportedly one of three candidates being considered for the position, her reappointment seems unlikely.  Also this week, key employment data for October will be released on Friday.

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