Source: US Dept. of Treasury End of Day
• Rates moved lower last week with both the 2-year and 5-year Treasury notes falling eight basis points to 4.52% and 4.65%, respectively.
• Midterm elections highlighted continued concerns over inflation and affordability, while divided government reduces the likelihood of significant fiscal expansion.
• The election outcome strengthened Fed independence, supporting the Fed’s ability to keep monetary policy focused on inflation and incoming economic data.
• Growing opposition to AI data-center development could slow investment and create downside risk to economic growth.
• The labor market remained resilient in October with payrolls rising 165,000 and unemployment falling to 4.1%, giving the Fed room to remain focused on inflation.
• Click the link below to read more.
