Daily Market Color October 24, 2022Rates Rise in U.S. while U.K. Ushers in New Prime Minister Rates rise despite new evidence of Fed tightening taking effect. Swap rates and Treasury yields rose across the curve today with the 2 and 10-year yields both rising ~3 bps to 4.51% and 4.25%, respectively. The rise in rates was a surprise given the latest composite PMI data, which revealed the second-fastest pace of contraction in the sector since 2009 (excluding the early pandemic period). Equities were also able to overcome the slowing PMI data, the S&P rising ~1.20% and NASDAQ rising ~0.90% on the day. United Kingdom elects first Indian Prime Minister, Rishi Sunak, after turbulent election process. Newly minted Prime Minister Rishi Sunak returns to the spotlight in UK politics, as a quick reversal of fortunes saw him elected over rivals after Liz Truss’s recent resignation and his resignation from Downing Street earlier this year. A seasoned financial professional prior to political life, markets will be watching his early days closely as they seek pound and gilt stability. The UK 10-Year yield declined about 25bps today with significant volatility throughout the day. Day ahead. Crude oil stock change data will be released at 4:30 PM ET, the highlight of a quiet day.