Risk Assets End Week on a High Note 

Risk assets end week on a high note. Stocks continued to climb today, shrugging off another hot inflation print to end the day (and the week) firmly in the green. Rates were mixed across a flattening curve during a shortened session, yields and swap rates climbing higher at the short-end as the market digested this morning’s personal income and spending data.

PCE inflation data shows inflation still running hot. The Fed’s preferred measure of inflation was released today and showed prices climbed 4.9% on a year-over-year basis. The figure came in above expectations but below March’s peak (5.2%). On a positive note, overall consumer spending remained strong, climbing 0.90% on a month-over-month basis.

Week ahead. Next week will be highlighted by labor data as the market gets both the latest jobs report and ADP’s private payrolls data- released on Thursday and Friday. As a reminder, the market will be closed on Monday in observance of Memorial Day.