Presented by Stifel, Nicolaus & Company, Incorporated Economic and Fixed Income Insights
Economic and Fixed Income Insights
The consumer price index (CPI) fell 0.1% in March, the first monthly decline in 10 months, and following a 0.2% increase the month prior. Year-over-year however, headline consumer prices rose 2.4% in March as expected, according to Bloomberg. This provides some support for those at the Fed looking for meaningful rise in prices. However, this trend in prices will need to be maintained in order to justify additional rate hikes in the future. Markets remain volatile on easing trade rhetoric between the world’s two largest economies and fresh tension in the Middle East. Bond yields ended the week slightly lower along most of the curve. The 10-year UST finished 2 basis points higher at 2.80%, and the 30-year UST was down one basis point to 3.02%. Tax-exempt yields continued to trend downward, with both the 10-year and 30-year MMD 3 basis points lower for the week, following a decline of 5 basis points the week prior.
Interest Rate Observations
Federal Funds Rate
10-year LIBOR Swap
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of April 10, 2018
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