MBS MID-DAY: Holding Ground After Morning Weakness


– Spending +0.2 vs +0.2 Consensus
– Income -3.6 vs -2.2 Consensus, biggest drop since 1993, reflects pumping up of bonuses/dividends in Dec and payroll tax holiday expiration in Jan , hence no pronounced reaction in bond markets or equities futures

Personal income decreased $505.5 billion, or 3.6 percent, and disposable personal income (DPI)
decreased $491.4 billion, or 4.0 percent, in January, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) increased $18.2 billion, or 0.2 percent. In December,
personal income increased $353.4 billion, or 2.6 percent, DPI increased $325.7 billion, or 2.7
percent, and PCE increased $14.8 billion, or 0.1 percent, based on revised estimates.

Personal outlays — PCE, personal interest payments, and personal current transfer payments — increased $22.0 billion in January,
compared with an increase of $13.3 billion in December. PCE increased $18.2 billion, compared with an increase of $14.8 billion.

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