General News Category Archives

Economic and Fixed Income Insights as March 21, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

Economic and Fixed Income Insights

Federal Reserve officials, meeting for the first time under Chairman Jerome Powell, raised the benchmark lending rate 0.25% and forecast a steeper path of hikes in 2019 and 2020, citing an improving economic outlook and rising inflation. The Fed noted that job gains have been strong in recent months; however, household spending have moderated recently.  Existing home sales rebounded in February following two months of decline. According to Bloomberg, existing home sales rose 3.0% in February to a 5.54 million annualized pace. The increase in February followed declines in both December and January. The median and average price of an existing home increased 5.9% and 4.3%, respectively, from February 2017.  The 10-year UST finished 6 basis points higher to yield 2.90% while the 30-year UST finished 3 basis points higher to yield 3.13%.   The 10-year MMD was unchanged at 2.51% while the 30-year MMD finished 3 basis points lower to 3.04%.

Interest Rate Observations

Benchmark Current Previous

Week

(+/-) Change Previous

Year

(+/-) Change
10-Year UST 2.90% 2.84% 6 2.41% 49
30-Year UST 3.13% 3.10% 3 3.02% 11
10-Year MMD 2.51% 2.51% 0 2.30% 21
30-Year MMD 3.04% 3.07% (3) 3.10% (6)
Federal Funds Rate 1.50% 1.50% 0 1.00% 50
1-month LIBOR 1.85% 1.78% 8 0.98% 87
SIFMA 1.22% 1.13% 9 0.79% 43
10-year LIBOR Swap 2.93% 2.89% 4 2.37% 56

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of March 20, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

 

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018

 

Economic and Fixed Income Insights as of March 14, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

Economic and Fixed Income Insights

Inflation cooled slightly last month as a decline in gasoline prices kept a lid on price pressures. The consumer-price index, which measures what Americans pay for most goods, increased 0.2% in February after rising a seasonally adjusted 0.5% in January, according to the Labor Department. In other economic news, the Commerce Department reported that retail sales declined for a third straight month as households curbed purchases of cars and other consumer items.  In the bond market, yields have experienced some volatility with divergence in the taxable and tax-exempt trends.  Treasuries trended lower for the week with the 10-year UST and 30-year UST both 5 basis points lower to 2.84% and 3.10% respectively.  In contrast, tax-exempt yields were slightly higher along the curve.  The 10-year MMD finished 4 basis points higher to yield 2.51%, and the 30-year MMD ticked up to 3.07%.

Interest Rate Observations

Benchmark Current Previous

Week

(+/-) Change Previous

Year

(+/-) Change
10-Year UST 2.84% 2.89% (5) 2.49% 35
30-Year UST 3.10% 3.15% (5) 3.11% (1)
10-Year MMD 2.51% 2.47% 4 2.45% 6
30-Year MMD 3.07% 3.05% 2 3.21% (14)
Federal Funds Rate 1.50% 1.50% 0 1.00% 50
1-month LIBOR 1.78% 1.71% 7 0.94% 83
SIFMA 1.13% 1.09% 4 0.71% 42
10-year LIBOR Swap 2.89% 2.90% (1) 2.47% 43

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of March 13, 2018.

 

 

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

 

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018

Economic and Fixed Income Insights as of February 28, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

On Tuesday, Federal Reserve Chairman Jerome Powell said the economy’s prospects have brightened in recent months and inflation is moving towards the Fed’s target range. A rate hike in March is almost certain, but expectations for future rate hikes remain increasingly uncertain particularly under the new, untested leadership of Chairman Powell. In other news, home prices continued to rise rapidly in the waning days of 2017. The S&P CoreLogic Case-Shiller National Home Price Index, which covers the entire nation, rose 6.3% in December, up from a 6.1% year-over-year increase reported for November. However, the pace of both new and existing home sales has slowed in recent months, which could ultimately put pressure on sellers to lower prices. Treasury yields initially spiked on Chairman Powell’s remarks before settling to finish the week mostly unchanged.  The 10-year UST finished unchanged at 2.89%, and the 30-year UST was 1 basis point higher to yield 3.16%.  Tax exempt yields ticked up slightly from the week prior.  The 10-year MMD finished 1 basis point higher to 2.48% while the 30-year MMD was 3 basis points higher to 3.06%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.89% 2.89% 0 2.45% 44
30-Year UST 3.16% 3.15% 1 3.06% 10
10-Year MMD 2.48% 2.47% 1 2.36% 12
30-Year MMD 3.06% 3.03% 3 3.12% (6)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.66% 1.60% 6 0.81% 85
SIFMA 1.09% 1.00% 9 0.62% 47
10-year LIBOR Swap 2.91% 2.90% 1 2.42% 49

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of February 27, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018

Webinars Available for CORES and Fannie Mae Enhanced Resident Services Initiative

Presented by Stewards of Affordable Housing for the Future (SAHF) and Fannie Mae

Enhanced Resident Services is the next stage of Fannie Mae’s Healthy Housing Rewards initiative, which aims to advance the development of sustainable communities and the availability of affordable housing by encouraging affordable multifamily borrowers to implement healthy design features and resident services that improve the health and stability of residents.

Fannie Mae is implementing Enhanced Resident Services with Stewards of Affordable Housing for the Future (SAHF). SAHF offers initial and ongoing certifications for both the organization and the multifamily affordable housing property providing quality resident services.

The Certified Organization for Resident Engagement & Services (CORES) Certification recognizes organizations that have developed a robust commitment, capacity, and competency in providing resident services coordination in affordable housing communities.

Please join us for one of two introductory webinars to learn more about the Healthy Housing Rewards – Enhanced Resident Services initiative and the CORES Certification!

___________________________________________________

To register for the presentation on Wednesday February 21st at noon: https://attendee.gotowebinar.com/register/3511728377674540289

To register for the presentation on Tuesday February 27th at 2pm: https://attendee.gotowebinar.com/register/7362225794728162562

 

Please note: after registering, you will receive a confirmation email containing information about joining the webinar.

To learn more about CORES Certification, please visit: https://coresonline.org

To learn more about Fannie Mae’s Healthy Housing Rewards Initiative, please visit: https://www.fanniemae.com/multifamily/healthy-housing-rewards

Economic and Fixed Income Insights as of February 13, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

U.S. consumer prices rose by more than projected in January as apparel costs jumped the most in nearly three decades. The consumer price index (CPI) rose 0.5% in January, surpassing expectations of a 0.3% rise, according to Bloomberg. The 1.7% monthly gain in apparel prices, which account for about 3% of the CPI, was the biggest since 1990. Also this morning, retail sales declined 0.3% in January, significantly lower than the 0.2% rise expected, according to Bloomberg, and following no change the month prior. Bond yields continued their climb on inflation expectations. The 10-year UST note finished the week 3 basis points higher to yield 2.83% while the 30-year UST bond finished 4 basis points higher to yield 3.11%.  In the tax-exempt market, the 10-year MMD ticked up 5 basis points to yield 2.42% while the 30-year MMD was 6 basis points higher at 2.98%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.83% 2.80% 3 2.49% 34
30-Year UST 3.11% 3.07% 4 3.08% 3
10-Year MMD 2.42% 2.37% 5 2.43% (1)
30-Year MMD 2.98% 2.92% 6 3.17% (19)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.59% 1.58% 1 0.77% 82
SIFMA 0.98% 1.08% (10) 0.65% 33
10-year LIBOR Swap 2.84% 2.83% 1 2.43% 41

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of February 13, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018

Economic and Fixed Income Insights as of February 7, 2018

Presented by Stifel, Nicolaus & Company, Incorporated

Federal Reserve officials, meeting for the last time under Chair Janet Yellen, decided to maintain the target range for the federal funds rate at 1.25-1.50% while adding emphasis to their plan for more rate hikes in the coming months. The Federal Open Market Committee stated that “the committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.” The Fed also said inflation “is expected to move up this year and to stabilize” around the 2% threshold. At the same time, the Fed repeated language saying that “near-term risks to the economic outlook appear roughly balanced.” With her term ending later this week, Chair Janet Yellen is handing the reins to Jerome Powell, who has backed her gradual approach and is expected to raise interest rates at the Fed’s next meeting in March. Both taxable and tax-exempt yields trended higher last week amid stronger economic growth and tightening labor market conditions. The 10-year UST finished the week 8 basis points higher to yield 2.80% while the 30-year UST finished 10 basis points higher to 3.07%.  In the tax-exempt market, the 10-year MMD ticked up 3 basis points to yield 2.37% while the 30-year MMD was 1 basis point higher at 2.92%.

Interest Rate Observations

 

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.80% 2.72% 8 2.34% 46
30-Year UST 3.07% 2.97% 10 2.95% 12
10-Year MMD 2.37% 2.34% 3 2.25% 12
30-Year MMD 2.92% 2.91% 1 3.03% (11)
Federal Funds Rate 1.50% 1.50% 0 0.75% 75
1-month LIBOR 1.58% 1.57% 1 0.77% 81
SIFMA 1.08% 1.16% (8) 0.65% 43
10-year LIBOR Swap 2.83% 2.74% 9 2.26% 57

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of February 6, 2018.

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. © 2018