Analyst: PCE data show a generally moderate picture

U.S. personal income and spending data were generally positive, with income and real spending slightly better than expected, analysts said. The headline price index was in line with expectations, while the year-on-year change in core prices came in slightly below economists' forecasts - likely a legacy of yesterday's downwardly revised GDP data. Super-core services inflation came in at 0.21% for the month, comparable to May and June. Overall, there's nothing stopping the Fed from cutting rates next month ...... but for the same reason, there's also no evidence that they should cut by 50 basis points. As a result, yields are up slightly, but ultimately these numbers probably won't cause too much volatility as the end of the month approaches (and the jobs data is released a week later).