Treasury yields inch up as market reacts to Fed meeting

Sept. 25:

Treasury yields rose following Wednesday’s Federal Open Market Committee meeting, then softened Friday, but went back up a bit this morning as markets continued to assess the outcome of that meeting. The Federal Reserve projected there will be one final rate hike this year, while the futures market believes there is slightly less than a 50% chance of another increase.

The Dow traded down this morning.

S&P Global: ‘Broad stagnation’ for U.S. businesses

The S&P Global Flash US Composite PMI was reported at 50.1 in September, just slightly less than August’s 50.2. It’s also just over the boundary separating an outlook for expansion in the level of business activity in the U.S. from one of contraction.

The report said the index signals “broad stagnation,” as it has been falling for the last four months.

Economic calendar

Tuesday, Sept. 26

• S&P CoreLogic Case-Shiller Home Price Index
• FHFA House Price Index
• New Home Sales
• Consumer Confidence

Wednesday, Sept. 27

• Advance Durable Goods

Thursday, Sept. 28

• Weekly Initial Jobless Claims
• Q2 Gross Domestic Product
• Pending Home Sales
• Fed Chair Jerome Powell hosts a town hall with educators.

Friday, Sept. 29

• Personal Consumption Expenditures Price Index
• Personal Income/Personal Spending
• Wholesale Inventories
• University of Michigan Consumer Sentiment

Treasury calendar

Tuesday, Sept. 26

• $48 billion auction of two-year Treasury notes

Wednesday, Sept. 27

• $49 billion auction of five-year Treasury notes
• $24 billion auction of two-year Floating Rate Notes

Thursday, Sept 28

• $37 billion auction of seven-year Treasury notes

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking