Economy

Government Yield Curves are Flat and Low

Government Yield Curves are Flat and Low

2 min readFOMC Minutes Released The minutes from the FOMC’s July 28-29 meeting were released today. In the committee’s discussion about how to continue to support the flow of credit to consumers, they deemed “it would be appropriate over coming months for the Federal Reserve to increase its holdings of Treasury securities and agency residential mortgage-backed securities…

COVID-19 infection Rates Surge

COVID-19 infection Rates Surge

1 min readCOVID-19 infection rates have fallen dramatically in most industrialized nations, but new cases in the U.S. and in developing countries have surged to record levels in the last few weeks. Despite the serious setbacks, lawmakers in the U.S. continue to grapple with how to most appropriately implement mask requirements to slow the spread of the…

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June Unemployment Report Shows Beginning of Recovery

2 min readStates across the U.S. set multiple single day records for new COVID-19 cases this past week. On June 27th, Florida reported 9,500 new cases, breaking its own record for daily new cases, which it set just a day earlier. Driven primarily by Southern and Southwestern states, the surge has forced legislatures to act. Florida has…

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Powell’s Got the Power: How the Fed Brought Funding Markets Back from the Dead

5 min readFunding markets are back from the dead. A little over two months ago, liquidity in short-term markets all but dissipated amidst a broader market panic in reaction to COVID-19. But fast action by the Fed prevented what might have turned into a full-blown liquidity freeze reminiscent of the one that helped precipitate the 2008 financial…

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Interest Rate Outlook: Markets Hopeful

2 min readProtesting Police Brutality Nationwide protests continued for the seventh day and night following the killing of George Floyd while in the custody of Minneapolis police. President Trump has considered invoking the Insurrection Act of 1807, which would allow the deployment of active-duty military personnel in response to civil unrest. The law was last used in…

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Interest Rate Outlook: Bond Market Liquidity

2 min readFOMC Meeting The Federal Reserve has taken extraordinary steps over the past six weeks to shield the economy from the massive fallout of the virus pandemic, including emergency interest rate cuts, massive bond purchases and the opening of multiple lending facilities to provide liquidity and backstops to the fixed income markets. Following their regularly scheduled…

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Interest Rate Outlook: Bond Market Liquidity Normalizing

2 min readEconomic Shutdown We are only just seeing initial readings on the state of the post-COVID 19 economy and much will unfold in the months ahead. Data released in early April reflects the dismal reality of the large-scale shutdown of the US economic growth engine. Jobless claims have surged to record levels, with more than 22…