Weekly Report – August 23rd, 2023

Graph 2023.08.23

Highlight of the Week

All Eyes on Jackson Hole Fed Symposium

  • As Fed officials meet for their annual Symposium in Jackson Hole, the prevailing sentiment is that they will maintain the guidance of rates being higher for longer.
  • As they continue to push inflation down to the 2% target, the market sentiment has shifted from the possibility of rate cuts in the first half of 2024 to now the second half of 2024.
  • Meanwhile 5-year and 10-year Treasuries have hit some of the highest yields in 15 years which has led to even higher rates on auto loans and mortgages. Meanwhile delinquencies have continued to rise Q-o-Q for the major categories and credit cards have amassed a debt balance of over $1 trillion.
  • The commercial real estate sector will also be looking to see what comes of the Fed Symposium and the September FOMC meeting as rising refinancing costs plague troubled asset valuations.

Rate Curves

Graph 2023.08.23
Category: Market Updates
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