Deposit Funding Compass Week of July 27, 2023

The 25-basis-point hike at the July FOMC meeting — to a range of 5.25%-5.50% — was as expected. While the lack of substantive changes to the policy statement suggests the majority of officials still want to keep the door open for another rate hike. Chair Jerome Powell’s somewhat dovish performance at the post-meeting news conference suggests a willingness to skip a hike at the September meeting, provided inflation data continues to be soft. Fed policymakers thoroughly telegraphed the 25-basis-point rate hike they delivered at the July meeting, and most FOMC participants probably still think one more 25-bp hike is needed to reach a sufficiently restrictively stance, but they may feel less strongly about that projection than they did in June.

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Deposit Funding Compass Week of January 18, 2024

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…
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Deposit Funding Compass Week of January 11, 2024

Americans paid more for housing and driving in December as inflation increased and the CPI registered 3.4%. On an annual basis, the so-called core measure increased 3.9%.  Early reactions show the rates market interpreting this as a challenge the Federal Reserve will cut interest rates as imminently as previously thought. The odds for a cut at the Jan…
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CU Funding Compass Week of January 5, 2024

Juxtapose data points have somewhat confused traders this morning as a sharp sell off in rates following the non-farm payroll report has been tapered by a dismal ISM release. US job growth picked up in December(+216k) and wage gains exceeded expectations, diminishing prospects for an imminent Federal Reserve interest-rate cut initially. Expectations for a March cut were…
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Deposit Funding Compass Week of January 5, 2024

Juxtapose data points have somewhat confused traders this morning as a sharp sell off in rates following the non-farm payroll report has been tapered by a dismal ISM release. US job growth picked up in December(+216k) and wage gains exceeded expectations, diminishing prospects for an imminent Federal Reserve interest-rate cut initially. Expectations for a March cut were…
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Deposit Funding Compass Week of December 28, 2023

We’d like to highlight some funding specials that are somewhat speculative given they are 10-20 BPS lower than what is currently outstanding on the same terms, however, with a lack of product overall and continued strong demand, we feel that we can move appreciable volume at the stated rates. We would be willing to firm…
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CU Funding Compass Week of December 28, 2023

We’d like to highlight some funding specials that are somewhat speculative given they are 10-20 BPS lower than what is currently outstanding on the same terms, however, with a lack of product overall and continued strong demand, we feel that we can move appreciable volume at the stated rates. We would be willing to firm…
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CU Funding Compass Week of December 20, 2023

Rates are down considerably week over week and at their lowest levels since mid-summer. Share Certificate issuance had a moderate uptick late last week/early this week but with limited days remaining in the month and two holidays to account for it looks prudent to begin focusing on 2024 business. Please see our current funding opportunities…
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Deposit Funding Compass Week of December 20, 2023

Rates are down considerably week over week and at their lowest levels since mid-summer.  CD issuance had a moderate uptick late last week/early this week but with limited days remaining in the month and two holidays to account for it looks prudent to begin focusing on 2024 business. Please see our current funding opportunities the…
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Deposit Funding Compass Week of December 14, 2023

Market Commentary: The FOMC left its policy rate unchanged yesterday at 5.25%-5.50%, as expected, but the totality of Fed communication was dovish enough to spur a significant bond rally throughout the afternoon. 2s fell almost 30bp by the end of trading, 5s fell below 4.00% for the first time since July, and 10s fell to…
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CU Funding Compass Week of December 14, 2023

Market Commentary: The FOMC left its policy rate unchanged yesterday at 5.25%-5.50%, as expected, but the totality of Fed communication was dovish enough to spur a significant bond rally throughout the afternoon. 2s fell almost 30bp by the end of trading, 5s fell below 4.00% for the first time since July, and 10s fell to…
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