Beyond the Treasury Rally, Conditions Remain Tight
The recent decline in Treasury yields does not tell the whole story: Although longer-term yields have fully retraced their post-FOMC rise, broader financial conditions remain tight.
Credit markets continue to signal pressure: Investment grade and high yield spreads have widened 12 and 67 basis points, respectively, since the September FOMC meeting.
Borrowing costs are still restraining the economy: Mortgage rates remain nearly 50 basis points higher, giving the Fed reason to let existing tightening work before raising rates again.
This week will bring the first Federal Open Market Committee decision since the Fed’s initial rate hike in September. While markets are pricing just an 11% probability of another rate hike at this meeting, there has been no shortage of drama for policymakers to digest since the September FOMC meeting. In this edition of Notes, we examine the evolution of financial conditions across several commonly followed measures. While Treasury yields have eased materially from their early-October highs, credit spreads and mortgage rates remain notably higher, a combination that could give the Fed a reason to remain patient at this meeting.
The table below shows the change in several familiar measures of financial conditions since the September FOMC meeting, both through October 7, when Treasury yields reached a local peak, and through October 26. Following the September meeting, bond yields rose sharply, particularly at the long end, with the 10- and 30-year Treasury yields climbing roughly 25 to 30 basis points by October 7. Much of that move has since reversed, leaving nominal Treasury yields slightly below their September FOMC levels. The same cannot be said for broader financial conditions. Credit spreads continued to widen through October 26, while mortgage rates remain nearly 50 basis points higher. This divergence could be an indication that higher rates and continued credit supply are beginning to bite even as Treasury yields have retraced.
Source: https://etfdb.com/etf-strategist-channel/beyond-treasury-rally-conditions-tight/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Visits: | 1,836,482,614 |
| Stories: | 8,728,723 |
Whistler Blowers, Insiders
