News

Economic and Fixed Income Insights as of December 6, 2017

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

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.35% 2.33% 2 2.38% (3)
30-Year UST 2.73% 2.76% (3) 3.04% (31)
10-Year MMD 1.99% 2.16% (17) 2.52% (53)
30-Year MMD 2.58% 2.82% (24) 3.26% (68)
Federal Funds Rate 1.25% 1.25% 0 0.50% 75
1-month LIBOR 1.40% 1.35% 5 0.62% 78
SIFMA 0.97% 0.96% 1 0.56% 41
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

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. @ 2017

Economic and Fixed Income Insights as of November 29, 2017

Presented by Stifel, Nicolaus & Company, Incorporate

Economic and Fixed Income Insights

US purchases of new homes unexpectedly increased last month, reaching the strongest pace in a decade and offering an encouraging signal for residential construction. The Commerce Department reported that new home sales increased 6.2% to a seasonally adjusted annual rate of 685,000 units, the highest level since October 2007. In other economic news, the Consumer Confidence Index rose from 126.2 to 129.5 in November, a 17-year high.  Taxable rates were little changed for the week.  The 10-year UST finished down 3 basis points to yield 2.33%, and the 30-year UST finished unchanged at 2.76%.  Tax-exempt yields rose steadily over the past week.  The 10-year MMD finished 12 basis points higher at 2.16% while the 30-year MMD finished 9 basis points higher to yield 2.82%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.33% 2.36% (3) 2.38% (5)
30-Year UST 2.76% 2.76% 0 3.04% (28)
10-Year MMD 2.16% 2.04% 12 2.52% (36)
30-Year MMD 2.82% 2.73% 9 3.26% (44)
Federal Funds Rate 1.25% 1.25% 0 0.50% 75
1-month LIBOR 1.35% 1.31% 4 0.62% 73
SIFMA 0.94% 0.92% 2 0.56% 38
10-year LIBOR Swap 2.32% 2.36% (4) 2.21% 11

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of November 28, 2017

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.

HUD Launches New Section 8(bb) Preservation Tool

If a PBRA HAP contract is terminated or expires and is not renewed, HUD is authorized to transfer any remaining budget authority to either a new or an existing PBRA HAP contract to provide assistance to eligible families. HUD provides a list of potential properties which are eligible for an 8(bb) transfer, which will be useful to owners who are interested in transferring their PBRA budget authority.

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