Bryant Bank Market Update - October 31, 2023
Vincent Webb, FRM
Webb Concrete & Building Materials, Webb Flooring, Webb Building Essentials
Good morning, rates are roughly unchanged today as investors await tomorrow’s Fed decision and Friday’s employment report for the month of October.? Long-term rates are ticking downward on safety trading as military operations in Gaza intensify and as violence threatens to spread beyond Israeli borders.? Here’s where the benchmarks are now:
Interest rate futures markets are pricing in exactly 0.00% odds of any change to the Fed Funds rate tomorrow.? In all likelihood, the 1:30 PM CDT post-announcement press conference with Jerome Powell is where any market-moving information may be revealed.?
Beyond that, the implied odds are at 26% for a December 13 hike, and only 40% now for any more rate hikes at all.? Those odds shift heavily toward rate cuts in the second half of 2024, the long-anticipated “pivot” that seems to perpetually be six months away.
We hope you have a great day!? Please let us know if there is anything we can be doing to better serve your needs.
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Quote of the Day:? “Happiness is a how, not a what.? A talent, not an object.”? --Herman Hesse