Daily Market Color

Fed Officials Stay on Message

Treasury yields and swap rates mixed as Fed officials continue hawkish commentary. Swap rates and Treasury yields ended the day little changed despite hawkish commentary from several Fed speakers. New York Fed President John Williams led the charge, saying that he is in the “higher-for-longer” camp when it comes to monetary policy. The 2-year yield rose ~2 bps to 3.442%, while the 10-year yield stayed even at 3.102%. Equities continued to sell off, with S&P 500 and NASDAQ both decreasing by ~1.10%. 

House prices and crude oil stock changes come in lower than expected while U.S. job openings increase. The S&P home price index in the U.S. increased 18.6% YoY in June, the lowest we have seen in 6 months. Stocks of crude oil were also below forecasts, coming in at 0.593 million barrels compared to 0.633 million. On the other hand, the number of U.S. job openings rose by ~200,000 from a month earlier to 11.2 million in July, despite the market projecting it to drop to 10.45 million.

Day ahead. There will be two more Fed speakers tomorrow, with Loretta Mester and Raphael Bostic set to make public comments. Data on employment change, oil stocks, and Chicago PMI is set to be released as well.

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