Source: US Dept. of Treasury End of Day
• Rates moved lower last week with the 2-year falling two basis points to 4.70% while the 5-year Treasury notes fell six basis points to 4.82%.
• Housing activity weakened further as pending home sales fell to an all-time low in September while homebuilder sentiment declined to a 14-year low in October.
• Consumer sentiment remained under pressure as the University of Michigan index fell 10% YoY and durable goods buying plans declined 18% MoM amid high prices and elevated borrowing costs.
• The labor market remains resilient as initial jobless claims fell to a four-year low and unemployment held at 4.2%, providing continued support for consumer spending.
• AI investment remains a key driver of economic growth, but recent weakness in technology stocks and heavy borrowing are raising concerns around valuations, funding, and the durability of investment spending.
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