Source: US Dept. of Treasury End of Day
• Rates moved lower last week with the 2-year falling ten basis points to 4.60% while the 5-year Treasury notes fell nine basis points to 4.73%.
• The Fed held rates, but two policymakers favored a hike, reinforcing expectations that persistent inflation and resilient economic growth could support a December rate increase.
• Economic growth remained strong in the third quarter with real GDP rising at a 3.4% annualized pace with consumer spending and AI-related business investment being key drivers.
• Underlying demand showed continued strength as final sales to private domestic purchasers rose 4.9%. Housing remained the main weak spot as elevated mortgage rates weighed on residential construction.
• Inflation pressures picked up again with core PCE rising 0.3% for a second straight month and 3.1% over the past year, well above the Fed’s 2% target.
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