Presented by Stifel, Nicolaus & Company, Incorporated
Janet Yellen’s final FOMC meeting as Chair of the Federal Reserve concludes today, and the latest policy decision and accompanying statement will be released at 2:00 p.m. Market participants widely expect rates to remain at the current range of 1.25%-1.50% but will be combing the statement for any sign of a more hawkish tone for monetary policy that could indicate a quicker removal of accommodation than the three hikes the Fed has forecast for 2018. A rate increase at the March FOMC meeting is largely considered a lock at this point. Friday, the latest round of jobs data is expected to continue the trend of robust hiring. Key in the report will be wage growth, which has remained sluggish despite unemployment that remains near record lows. Bond yields continued to trend higher for the week ended January 30, 2018. The 10-year UST climbed 11 basis points to yield 2.72%, and the 30-year UST finished 7 basis points higher to 2.97%. Municipal yields outpaced their taxable counterparts. The 10-year MMD jumped 19 basis points to yield 2.34% while the 30-year MMD finished 18 basis points higher to yield 2.91%.
Interest Rate Observations
|Federal Funds Rate||1.50%||1.50%||0||0.75%||75|
|10-year LIBOR Swap||2.74%||2.64%||10||2.38%||36|
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of January 30, 2018.
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