Weekly Capital Market Update (11/20)
Thirty Capital Financial
Unbiased advice. Reliable debt management services.
Every week Thirty Capital Financial shares quick yet detailed capital market updates, insight, and predictions. Tap the subscribe button at the top to receive the latest outlooks directly to your inbox.
Last week we saw lots of volatility with Treasury yields. Short-term rates remained level with overnight SOFR sticking at 5.32, but there was a strong rally with Treasuries on the short end (down 19 BPS) after rates ran up the week prior. The ARRC (committee formed by the Fed to process the demise of LIBOR) officially disbanded last week and Bloomberg also announced they will no longer be publishing the credit sensitive index BSBY.
CPI numbers were a bit softer than expected which the market took as further justification for the Fed to pause rate hikes and possibly accelerate the timeline for rate cuts. Rates dropped almost 20 BPS on Tuesday following the release of CPI numbers. PPI also came in soft behind CPI, and Retail Sales numbers were fairly strong as well. With 100 BPS of cuts built into the curve for next year, there are still great opportunities to execute forward starting caps & swaps.
This week will be very quiet with Thanksgiving. Markets are open Wednesday but closed Thursday and for half the day on Friday. The most important piece of economic news to watch this week will be the minutes from last month’s FOMC meeting.
领英推荐
On more of a Macro level, the House passed a temporary bill to avoid a government shutdown. There will be more fights & disagreements coming in January but it appears we’ll at least get through the Holidays prior.
More Updates:
#CRE #commercialrealestate #capitalmarkets #financialanalysis #financialinsights