Applications for US unemployment benefits fell to the lowest level since February, underscoring businesses’ reluctance to let go of workers. Initial unemployment claims decreased by 13,000 to 216,000 in the week ended Sept. 2, Labor Department data showed Thursday. The figure was lower than all forecasts. Fed Funds futures have priced in a pause from the FOMC at this months meeting but expect nearly a 50% chance we will see an additional hike at the beginning of November.
Credit unions have begun to ramp up their quarter end issuance and spreads demanded by investors have begun to widen with a deluge of new deals coming to market. We anticipate these conditions persist through the end of September and supply will only exacerbate the cost of issuance. Anticipating deposit needs and coming to market even just a week or two early can produce considerable cost savings.