A re-escalation of trade tensions between Washington and Beijing has continued to fuel a sell-off in global equities which began after the Federal Reserve signaled the cycle’s first rate cut last week was a preventative “mid-cycle” move. In other economic news, mortgage applications increased 5.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 2, 2019. Rates have plunged as investors seek safety from global growth fears after a recent round of rate cuts from the U.S. and other central banks. The benchmark ten-year UST yield has dropped 36 basis points to its lowest level in nearly three years. Tax-exempt yields also trended drastically lower while under-performing Treasuries.
Interest Rate Observations
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of August 6, 2019.
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