Economic and Fixed Income Insights, Aug. 13, 2019

As the flight-to-quality trade continues with investors fleeing equities and jumping into bonds, stocks remain under pressure amid mounting international uncertainty. According to Bloomberg, the U.S. yield curve is at its flattest level since 2007. On the housing front, mortgage applications increased 21.7 percent from a week earlier. The 30-year fixed mortgage rate decreased eight basis points to yield 3.93 percent, the lowest level since November 2016, and has now dropped more than 80 basis points this year. Rates remain volatile and continue to trend lower on global uncertainty.  The benchmark ten-year UST remains near recent lows at 1.71 percent and the long bond dropped another seven basis points to 2.16 percent. In the tax-exempt market, the ten-year MMD fell seven basis points and the 30-year MMD fell 12 basis points.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of August 13, 2019.

Important Disclosures

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