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Producer price inflation not as hot as expected, jobless claims fall below 300,000 mark

The Producer Price Index (PPI) showed prices at the wholesale level in September rose 0.5% month-over-month (m/m), below the Bloomberg consensus estimate calling for a 0.6% gain, and south of August's 0.7% increase. 

The core rate, which excludes food and energy, gained 0.2% m/m, below estimates of a 0.5% rise and the prior month's 0.6% gain. Y/Y, the headline rate was 8.6% higher, just shy of projections of an 8.7% increase and compared to August's 8.3% gain. The core PPI increased 6.8% y/y last month, south of estimates calling for a 7.1% rise, and following August's 6.7% increase.

Weekly initial jobless claims came in at a level of 293,000 for the week ended October 9, versus estimates of 320,000 and compared to the prior week's upwardly-revised 329,000 level. The four-week moving average fell by 10,500 to 334,250, and continuing claims for the week ended October 2 dropped by 134,000 to 2,593,000, below estimates of 2,670,000. 

The four-week moving average of continuing claims fell by 30,500 to 2,737,750.

The yield on the 2-year note is declining 2 basis points (bps) to 0.35% and the yield on the 10-year note is dipping 1 bp to 1.54%, while the 30-year bond rate is ticking 1 bp higher to 2.05%.

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