Chasing Yields

The long-anticipated decision from the Federal Open Market Committee today was to raise the Fed Funds Rate by a quarter point, the first hike in three years, as the Fed moves to combat rising inflation risks. The Committee voted unanimously to lift rates to a new...

Heading into the September 16 FOMC decision, swaps and futures markets imply roughly 60% odds that the Fed lifts its target range to 3.75%–4%.That puts the market and the White House on opposite sides of the same question.

The 10-year Treasury topped 4.81% this week as the bond market continues to signal concern over inflation and rising oil prices and our rising deficit.

If markets were hoping for a quiet Wednesday morning, today’s Producer Price Index data had other ideas.
The April PPI figure surged to 1.4% month-on-month — a substantial overshoot compared to the forecasted 0.5% and nearly double the previous month’s reading of 0.7%.

Quarterly earnings reports have anchored market transparency for decades, but that may be changing.

For years, institutional investors have had something retail municipal bond buyers simply didn’t – real time pricing, broad market visibility, and the tools to act on both with precision.