In the News
- The Next FOMC Meeting is November 1, 2023 with a 92.7% probability of no rate hike and a 7.3% chance of a 25 basis point rate change, according to CME Group’s FedWatch Tool.
- While the expectation for 2023 was that the US economy would falter under the sharpest rate hikes in decades, even as inflation cooled, the labor market and consumer spending have shown considerable resiliency.
- At least one major bank is feeling the squeeze of customers seeking higher yields for their cash deposits. Net interest income at Schwab Bank dropped 24% as customers moved cash to higher yielding cash products such as money market funds in a process called “cash sorting.”
- BVAL AAA Curve = Bloomberg Valuation Service’s real-time and contributed sources tracking movement in the Municipal market.
- BBI = Bond Buyer Index; a daily index of municipal bond prices created by the Chicago Board of Trade and published by The Bond Buyer.
- RBI = Revenue Bond Index; a weekly index of interest rates on revenue bonds.
- 10-Year TSY = 10-Year Treasury index tracking the yield of U.S. Treasury Securities. It is closely watched as an indicator of broader investor confidence.
- SOFR Index = An extension of the Secured Overnight Financing Rate (SOFR), it measures the cumulative impact of compounding the SOFR on a unit of investment over time (i.e. One Year).
- Fed Funds Rate = Set by the Federal Open Markets Committee, it guides overnight lending between U.S. banks.
*30 Day Visible Supply based on Bloomberg Fixed Rate municipal calendars. Excludes accreted value of capital appreciation bonds and short-term notes. Prior to March 7, 2005, values calculated using full calendar history.
Source: Bloomberg – Rates as of 10/16/23
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