Daily Market Color August 12, 2021Rates Edge Higher with Continued Inflationary Pressures Rates steady as pricing pressure continues A day after seeing headline CPI increased 5.4% YoY, headline PPI accelerated to 7.8% YoY in July (+7.2% expected). This is the sixth month of increases within the PPI data, and the 5th straight month the gauge has exceeded expectations, further fanning the flames for the Fed to commit to a tapering timeline. UST yields/swap rates were modestly higher throughout the day, with the belly of the curve seeing the largest move — 5y UST yield increased 2 bps to close at 0.83%. Initial jobless claims drop for 3rd consecutive week U.S. initial jobless claims dropped by 12,000 from the previous week, and were in line with analyst expectations at 375,000. Adding to the optimism in the report from the Labor Department, the number of continuing claims fell below 2.9 million for the first time since March 2020. The data is representative of both 1) the resiliency of businesses despite the recent spike in Delta variant cases and 2) the rolling back of pandemic-era benefits programs in states across the country. Derivative Path featured in Business Insider Yesterday, Business Insider posted a piece to highlight how Derivative Path is democratizing access to Capital Markets for financial institutions of all sizes. The article discusses common barriers financial institutions face when entering the derivatives space and highlights our technology-driven solutions-based approach. The article also includes quotes from a few of our clients, with Brad Roubitchek, a senior vice president and treasurer for Centier Bank, commenting, “I felt it was to our benefit to trade with multiple banks and the only way to do that efficiently in the long-run is employ a firm like Derivative Path.” Read the full story here.
