This morning, we got the latest on consumer expectations from the NY Fed. The most compelling item was the decline in one-year inflation expectations, which declined 0.02% to 3.4% - that is the lowest level since April 2021. 

It is also totally unacceptable for the Federal Reserve.

The U.S. Treasury auctioned $37 billion of 10-year government bonds. The market is rebounding on this and was better received than the $50 billion auction of 3-year notes released earlier in the day.

The 10-yield yield remained higher after the 10-year auction results came in and is around 4.27%.

Weak performance from top components Alphabet (GOOG/L) and Meta Platforms (META) are driving today’s performance in Communication Services.

The S&P 500 hit a new intraday high for the year of 4,618.11. That’s impressive, given the move in yields today. We will see if we can hold this level as the Street gets ready for tomorrow’s consumer price index report and Wednesday’s Fed rate decision.