Economic and Fixed Income Insights, October 10, 2018

Rising yields have been the market focus after last week’s selloff.  Continued positive economic news, including record low unemployment and rising wages, has stoked inflation concern.  Producer price data this week shows steady upward pressure on prices in September, further supporting the notion and the Fed’s case for another rate increase this year.  For the week, US government debt yields rose 15 basis points in both the 10-year and 30-year maturities.  Municipals saw similar increases with the 10-year MMD up 14 basis points to 2.72% and the 30-year MMD up 19 basis points to yield 3.40%.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of October 9, 2018.

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