Bond market participants and prognosticators are beginning to reassess their expectations for rate cuts in 2024. This morning Federal Reserve Bank of Atlanta President Raphael Bostic urged policymakers to proceed cautiously toward interest-rate cuts given the potential economic impact of unpredictable events ranging from elections at home to conflicts around the world. Fed officials have pushed back against market expectations of imminent and deep rate reductions this year. Odds of a March cut have notably eased. Week over week 5,10, & 30yr yields are up between 15 and 20bps, duly reflecting the aforementioned shift in sentiment.
Issuance in Brokered CDs remains wide spread across banks of all sizes and geographies. Demand has been somewhat muted as yields have failed to keep pace with other asset classes, particularly when viewed against the backdrop of supply in the system. This week’s rates reflect adjusted albeit still aggressive opportunities that may need to be tailored to a specific funding strategy if volatility persists.