by John Luke Tyner | Nov 8, 2024 | Blog, Bonds
As expected, the Fed opted to cut rates by 25bps in November, taking the Federal Funds rate to a range of 4.50% to 4.75%. Marking now the second consecutive reduction in rates, this month’s cut is a notably smaller reduction following the 50bps cut to initiate the...
by John Luke Tyner | Oct 24, 2024 | Blog, Bonds
The 10-year Treasury yield is up ~60 bps from the YTD lows seen just prior to the 50bp Fed cut on September 16. The widespread view is that the spike in rates is due to a combination of a) repricing the Fed’s rate cut path and b) the rising risk of a post-election...
by John Luke Tyner | Oct 11, 2024 | Blog, Bonds
September CPI Year-over-year, consumer prices rose 2.4%, a tenth of a percentage point more than expected but down from the 2.5% annual increase in August. 2.4% is the smallest annual gain since February 2021. Food prices rose 0.4%, while energy prices dropped...
by John Luke Tyner | Sep 27, 2024 | Blog, Bonds
Post Covid Inflation Source: Bianco. As of 9/24/24 In a recent op-ed, Jim Bianco argued that recessions and financial crises can create change across an economy. In 2020, we had both a financial crisis and a recession, significantly reshaping the economic...
by John Luke Tyner | Sep 19, 2024 | Blog, Bonds
The debate between 25 or 50bps has been settled. It appears that markets strong-armed the Fed to front-load their first cut, where today they cut the funds rate by 50bps. This moved the target rate range from 5.25% – 5.50% to 4.75% – 5.00%. The updated...
