Market Updates

• Yields marched higher over the week with the two-year Treasury note surging by 31 basis points to 4.72% while the five-year note increased by 14 basis points to 4.33%

• The Federal Reserve announced another widely anticipated 75 basis point increase in the Fed funds rate bringing the range to 3.75% - 4.00%, and while markets were little changed on the announcement, Fed Chair Powell’s hawkish remarks in the post meeting press conference eventually sent equities tumbling and yields higher

• The labor market remains tight as the economy added a greater than expected 261 thousand to payrolls in October and the prior two months were revised upward bringing the three-month average to 289 thousand

• Despite headline strength, the unemployment rate rose to 3.7% and the 261 thousand increase in payrolls was the smallest monthly addition since December of 2020 -potentially a sign of a loosening labor market however, labor force participation fell to 62.2% which is not helpful for a Fed hoping to observe softening wage pressures