We enter the September 15 week with U.S. inflation firmer and long-term borrowing costs moving higher. August consumer prices rose 0.4%, while the 10-year Treasury yield reached 4.97% on Monday and the latest 30-year mortgage average stood at 6.76%. The Federal Reserve begins a two-day meeting Tuesday, with its decision and updated projections due Wednesday. In the Dominican Republic, inflation continued to ease toward the central bank's target range.
01 · U.S. ECONOMY
Consumer inflation rises 0.4% in August
The Consumer Price Index increased 0.4% in August after a 0.1% rise in July and was 3.4% higher than a year earlier. Gasoline rose 3.9% and shelter increased 0.3%. The index excluding food and energy rose 0.3% for the month and 2.4% over the year.
The U.S. Treasury's daily par yield curve placed the 10-year yield at 4.97% on September 14, up from 4.78% on September 4. The 30-year yield was 5.34% on Monday.
Freddie Mac's September 10 survey put the average 30-year fixed mortgage at 6.76%, up from 6.71% a week earlier and 6.35% a year earlier. The 15-year average increased to 6.09% from 6.04%.
Seasonally adjusted U.S. business applications totaled 531,728 in August, down 7.8% from July. The Census Bureau projected 28,501 payroll-tax business formations within four quarters from the August applicant cohort, 4.6% fewer than the comparable July projection.
The Banco Central de la República Dominicana reported that consumer prices rose 0.38% in August. Annual inflation slowed for a second month to 5.13%, while core inflation eased to 4.76%, within the central bank's 4.0% plus-or-minus 1.0% target range.
The Federal Open Market Committee is scheduled to meet Tuesday and Wednesday. The September meeting includes a Summary of Economic Projections, and the policy decision will be followed by a press conference.