Inflation Metrics - Personal income increased by 04% in July, aligning with expectations [1] - Spending rose by 05% in July, meeting expectations [2] - Real spending, adjusted for inflation, increased by 03%, matching expectations and marking the best performance since March [2] - Month-over-month PCE increased by 02%, consistent with May's level [3] - Year-over-year PCE stood at 26%, precisely as anticipated [3] - Core PCE year-over-year reached 29%, slightly higher than the previous month's 28% [4][5] Trade Balance and Inventories - The trade deficit came in at negative 103 billion, exceeding expectations of negative 902 billion, and approaching the record deficit of negative 161 billion from March [6] - Wholesale inventories increased by 02% in July (preliminary) [6] - Retail inventories also increased by 02% in July [6] Market Reaction - The 2-year Treasury yield decreased slightly from 364% to 363%, compared to last Friday's close of 370% [7] - The 10-year Treasury yield remained relatively stable at 421%, unchanged from yesterday's close but lower than last Friday's close of 426% [7]