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Economic and Fixed Income Insights
U.S. pending home sales rose in February for the first time in three months, highlighting uneven progress in the housing sector. According to Bloomberg, the pending home sales index increased to a reading of 107.5, up 3.1% from the prior month. In other news, Q4 GDP expanded at a 2.9% annual rate in the final three months of 2017, up from the previously reported 2.5%. The biggest gain in consumer spending in three years partially offset the drag from a surge in imports. The upward revision to the fourth-quarter growth estimate also reflected less inventory reduction than previously reported. Bonds have rallied as the tech rout has spurred demand for haven assets. For the week, the 10-year UST was 12 basis points lower to yield 2.78%, while the 30-year UST finished 10 basis points lower to yield 3.03%. Tax-exempt yields fell in tandem with treasuries. Both the 10-year and 30-year MMD were 5 basis points lower for the week yielding 2.46% and 2.99% respectively.
Interest Rate Observations
|Federal Funds Rate||1.75%||1.50%||25||1.00%||75|
|10-year LIBOR Swap||2.79%||2.93%||(14)||2.36%||43|
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of March 27, 2018.
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