ISRAEL: Consumer Prices Rise 2.6% Y/Y in December

The Atlanta Fed's GDPNow estimate for Q3 edged a little lower after the release of the October retail sales, September business inventories, and October/November employment reports Tuesday. The current reading of 3.47% Q/Q SAAR represents a 0.1pp downgrade from last Thursday's update and is the lowest since the September 24th nowcast.

• Of course the latest data are mostly reflective of Q4 and not Q3 dynamics, but the delayed release of business inventories for the final month of Q3 was enough to nudge the contribution of inventories to GDP by 0.05pp. The remainder of the downgrade was accounted for by weaker PCE (2.69% after 2.75%), which is the lowest estimate for the quarter's consumption since August.
• At this point, incoming delayed data are largely just refining the estimate. We only get the advance report for Q3 next week at which point GDPNow will start tracking Q4.

• +5,000 FVH6 109-09, buy through 109-08.75 post time offer at 1111:55ET, DV01 $222,000.
• The 5Y contract trades 109-09.5 last (+3.75).

• 3,000 SFRU7 1Y bundle (SFRU7-SFRM8) +0.030 at 1102:43ET, likely swap-tied selling with spds running wider at the moment.