Presented by Stifel, Nicolaus & Company, Incorporated Economic and Fixed Income Insights
Economic and Fixed Income Insights
U.S. new home construction rose by more than forecast in March on a rebound in multifamily starts, according to Bloomberg. Residential starts rose 1.9% to 1.32 million annualized rate (estimate 1.27 million) while building permits, a proxy for future construction of all types of homes, rose 2.5% to 1.35 million (estimate 1.32 million). While demand remains solid, a shortage of workers, rising costs for materials and a scarcity of ready-to-build lots are limiting gains in building activity. Turning to the bond market, the treasury yield curve continues to flatten as the spread between the short and long ends trends toward decade lows, according to Bloomberg. For the week, the benchmark 10-year UST finished 5 basis points higher at 2.83%, and the 30-year UST was down one basis point to 3.02%. Tax-exempt yields also continued to trend downward. The 10-year MMD finished 6 basis points lower to yield 2.40%, and the 30-year MMD finished 3 basis points lower to 2.96%
Interest Rate Observations
|Federal Funds Rate||1.75%||1.75%||0||1.00%||75|
|10-year LIBOR Swap||2.86%||2.79%||7||2.17%||69|
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of April 17, 2018.
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