Source: US Dept. of Treasury End of Day
• Yields fell over the week with the two-year Treasury note decreasing by 14 basis points to 2.99% while the five-year note dropped by 20 basis points to 2.85%
• Housing activity continued its weakening trend highlighted by a bigger than expected drop in existing home sales (5.4% vs an expected 1.1%) and a plunge in builder sentiment as high prices coupled with high mortgage rates have raised the monthly payment on the median priced home by approximately $700 since the beginning of the year
• The labor market also continues to show signs of cooling, albeit nowhere near the chill being felt by the housing market, as initial unemployment claims recorded its highest number this year (244k) and as more reports emerge of companies slowing hiring or outright cutting payroll numbers
• The FOMC meets tomorrow and Wednesday where it is widely expected that the committee will raise the benchmark interest rate by another 75 basis points in their continued effort to slow inflation
