Presented by Stifel, Nicolaus & Company, Incorporated
On Monday, Federal Reserve Chair Janet Yellen said she would step down from the Federal Reserve once her successor is sworn into office. Her departure leaves President Trump with four seats to fill on the Fed’s board of governors. President Trump has nominated Jerome Powell to replace Yellen, when her term ends in February, though his chairmanship is still subject to Senate confirmation. It’s a short week due to the Thanksgiving holiday and a relatively light economic calendar. According to Bloomberg, existing home sales rose 2% in October from 5.37 million to a 5.48 million unit pace, significantly above the 0.2% rise expected. Taxable rates fell along the curve while tax-exempt rates continued to tick upward. The 10-year UST finished the week down 1 basis point to yield 2.36%, and the 30-year UST finished 7 basis points lower to yield 2.76%. The 10-year MMD finished 4 basis points higher to yield 2.04% while the 30-year MMD finished 3 basis points higher to yield 2.73%.
Interest Rate Observations
|Federal Funds Rate||1.25%||1.25%||0||0.50%||75|
|10-year LIBOR Swap||2.36%||2.36%||0||2.08%||28|
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of November 21, 2017
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