by Aptus PM Team | Jul 19, 2023 | Blog, Bonds
With many declaring the Fed’s work done, we thought it made sense to discuss the challenges that still remain in this hiking cycle. The headline inflation numbers have been hammered down, but underlying conditions still give them the backdrop to try putting the...
by Aptus PM Team | Jul 5, 2023 | Blog, Bonds
QT Slowly Eating Away Liquidity Even with the spike in the Fed’s Balance sheet following the SIVB (Silicon Valley Bank) collapse, QT is still quietly going on in the background. The Fed has stayed course in their communication of the importance of shrinking...
by Aptus PM Team | Jun 21, 2023 | Blog, Bonds
Source: Strategas as of 06.20.2023 Many of the underlying sources of inflation have cooled over the past year. Supply chains have improved, interest rate sensitive sectors are seeing slower growth, but is it enough to get to the fed’s 2% target? The...
by Aptus PM Team | Jun 15, 2023 | Blog, Bonds
The “Hawkish” Pause Yesterday the Fed left their target for the funds rate unchanged between 5% to 5.25%. Many labeled the pause a hawkish “skip” where further tightening is expected. The Fed DOT plot signaled that there could be two more rate hikes in 2023. QT...
by Aptus PM Team | Jun 14, 2023 | Blog, Bonds
Year-over-year CPI declined in May, roughly in line with estimates: Headline MoM: +0.1% (Expected: +0.1%) Core MoM: +0.4% (Expected +0.4%) Headline YoY: +4.0% (Expected: 4.0%) Core YoY: +5.3% (Expecting 5.2%) Top/Bottom Contributors: Source:...
by Aptus PM Team | Jun 7, 2023 | Blog, Bonds
The next Fed meeting starts a week from today. As of now, the market is currently pricing in just a 23% chance the Fed hikes at the meeting. WSJ’s Nick Timiraos already provided his pre-meeting proclamation of a probable pause. At this point, anything other than a...
