What Rate Cuts?

Not too long ago, markets were pricing potential for a rate cut at the July meeting. That has been pushed out to November as the “hold-and-see” narrative takes over from the hiking rates narrative as the data continues to hold up stronger than expected.   Source:...

T-Bills At Risk?

We’ve written extensively about the debt ceiling, and how it could impact markets (see Part One and Part Deux). While uncertainty remains around the various market impacts of a default, the more pressing client question is “Are the T-bills I just bought going to be...

April CPI is No Game Changer

Inline CPI print with Shelter continuing to pull the index higher although some signs of slowing. Used Cars prices came in hotter than expected which have been lagging the Manheim index for most of the year. Food prices were down for the second month in a row which...

May 2023 FOMC: (Still) Higher for Longer

The Fed delivered a 25bps hike as was broadly expected by markets. They made a modification in their statement omitting the wording regarding the necessity of further rate hikes. To us, this indicates a sort of “hawkish” pause in policy here at the 5-5.25%...

Thoughts on the Curve. And Municipals.

Curves are Inverted, Term Premiums LOW   The market continues to price in a return to the 2010 norms of subdued inflation pressure, with term premia below zero across the curve.   Source: TS Lombard. As of 04.12.2023   While slower nominal growth could put a...