Presented by Stifel, Nicolaus & Company, Incorporated
The US job market continues to expand as private payrolls increased by 190,000 in November, well ahead of expectation. The growth comes as the US unemployment rate is at 4.1%, a 17-year low. In other news, total mortgage applications rose 4.7% last week from the previous week and are now 8% higher than a year ago. While buyer demand remains strong, the supply of affordable homes for sale is not as inventories are dropping all around the country. Both taxable and tax-exempt rates drifted lower over the past week on geopolitical concerns and the possibility of a US government shutdown on Saturday. The 10-year UST finished 2 basis points higher to yield 2.35% and the 30-year UST finished 3 basis points lower to finish at 2.73%. Tax-exempt yields remain volatile and fell sharply after rising steadily the week prior. The 10-year MMD finished 17 basis points lower at 1.99% while the 30-year MMD finished 24 basis points lower to yield 2.58%.
Interest Rate Observations
|Federal Funds Rate||1.25%||1.25%||0||0.50%||75|
|10-year LIBOR Swap||2.37%||2.32%||5||2.21%||16|
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of December 5, 2017
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