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Tuesday, July 31, 2018 |
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 7/24/18 | 1.92 | 2.02 | 2.19 | 2.42 | 2.63 | 2.74 | 2.83 | 2.91 | 2.95 | 3.02 | 3.08 |
| 7/25/18 | 1.90 | 2.01 | 2.20 | 2.42 | 2.66 | 2.74 | 2.82 | 2.90 | 2.94 | 3.00 | 3.06 |
| 7/26/18 | 1.89 | 1.99 | 2.19 | 2.41 | 2.69 | 2.78 | 2.86 | 2.95 | 2.98 | 3.05 | 3.10 |
| 7/27/18 | 1.90 | 2.00 | 2.20 | 2.43 | 2.67 | 2.76 | 2.84 | 2.92 | 2.96 | 3.03 | 3.09 |
| 7/30/18 | 1.91 | 2.04 | 2.21 | 2.43 | 2.66 | 2.77 | 2.85 | 2.94 | 2.98 | 3.05 | 3.11 |
Source: U.S. Department of the Treasury, as of 07/30/2018
Will Fed Chairman Powell Continue the Rate Hikes?
The Federal Open Market Committee (FOMC) will have its next meeting today with the Fed Funds target rate decision scheduled for released tomorrow, August 1 at 1:00 PM CST.
The Fed has raised its Fed Funds Target rate seven times since December of 2015 after holding steady at low rates since December of 2008. The increase in the target rate has continued with two hikes since Federal Reserve Chairman Jerome Powell assumed the Chairmanship in February of this year. The target rate currently stands at a range of 1.75% to 2.00%. As of July 30th, the Bloomberg Future Implied Probability indicates the likelihood of an increase at the meeting this week to be relatively low, but has shown an increased to 18.6% from the previous survey of 1.30%.
Below are the results of the Bloomberg survey:
The Federal Open Market Committee (FOMC) will have its next meeting today with the Fed Funds target rate decision scheduled for released tomorrow, August 1 at 1:00 PM CST.
The Fed has raised its Fed Funds Target rate seven times since December of 2015 after holding steady at low rates since December of 2008. The increase in the target rate has continued with two hikes since Federal Reserve Chairman Jerome Powell assumed the Chairmanship in February of this year. The target rate currently stands at a range of 1.75% to 2.00%. As of July 30th, the Bloomberg Future Implied Probability indicates the likelihood of an increase at the meeting this week to be relatively low, but has shown an increased to 18.6% from the previous survey of 1.30%.
Below are the results of the Bloomberg survey:
Source: Bloomberg, L.P. July 30 @ 10:40am
So what does this mean for investments and putting cash to work while rates are expected to continue to move higher, at least on the short end? Please contact your portfolio representative to discuss what options are best for you.
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
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