Federal Reserve officials raised interest rates for a third time this year and reaffirmed their outlook for further gradual hikes well into 2019. The quarter-point increase boosted the benchmark federal funds rate to a target range of 2% to 2.25%. In other economic news, consumer confidence rose in September, notching its highest level in about 18 years. The Conference Board’s index rose to 138.4 in September from 134.7 in August. The all-time high of 144.7 was reached in 2000. Bond markets extended their recent selloff ahead of the Fed’s latest policy decision. The 10-year UST yield was up 4 basis points to 3.10%, and the 30-year UST finished 3 basis points higher to 3.23%. In the municipal market, both the 10-year and 30-year MMD were 4 basis points higher for the week, yielding 2.62% and 3.26% respectively.
Interest Rate Observations
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of September 25, 2018.
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