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
|Federal Funds Rate||1.50%||1.50%||0||1.00%||50|
|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.
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