MBS MID-DAY: On The Mend After Morning Sell-Off


– Consumer Spending -0.2 vs +0.1 forecast
– First decline since May 2012
– Income +0.0 vs +0.1 forecast
– PCE Prices +0.0 vs +0.1 forecast

– Market Reaction: very slight, very brief positivity and now back to pre-data levels. Next!

Personal income decreased $5.6 billion, or less than 0.1 percent, and disposable personal
income (DPI) decreased $16.1 billion, or 0.1 percent, in April, according to the Bureau of Economic Analysis.
Personal consumption expenditures (PCE) decreased $20.5 billion, or 0.2 percent. In March, personal income
increased $36.2 billion, or 0.3 percent, DPI increased $25.4 billion, or 0.2 percent, and PCE increased
$14.2 billion, or 0.1 percent, based on revised estimates.

Personal outlays — PCE, personal interest payments, and personal current transfer payments — decreased $21.7 billion
in April, in contrast to an increase of $16.4 billion in March. PCE decreased $20.5 billion, in contrast to an
increase of $14.2 billion.

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