1 Mo 5.56 | 2 Mo 5.61 | 3 Mo 5.56 | 4 Mo 5.61 | 6 Mo 5.53 | 1 Yr 5.46 | 2 Yr 5.04 | 3 Yr 4.83 | 5 Yr 4.62 | 7 Yr 4.63 | 10 Yr 4.59 | 20 Yr 4.90 | 30 Years 4.71 |
Market Updates
Weekly Economic Update: August 1, 2022
• Yields continued to descend over the week with the two-year Treasury note falling by 11 basis points to 2.88% while the five-year note dropped by 17 basis points to 2.68%
• The FOMC raised the Fed Funds rate by a fully anticipated 75 basis points last week and provided little forward guidance on the future path of interest rates as they will have a larger than usual amount of data to digest before their next meeting slated for September 20-21
• GDP contracted by -0.9% in the first look at Q2 growth which was highlighted by an outsized drag of -2.0% from inventories however, consumer spending remained firm suggesting the slowdown in growth may be more attributable to supply constraints than to weakening demand
• Corporate earnings releases for Q2 are beginning to show consumers resisting higher prices and if sustained, will lead to easing wage pressures providing a potential welcome sign for the Fed in their effort to rein in inflation