Fedspeak Lifts Markets
December 4, 2023 — Last week’s data releases signaled continued slowing inflation, and commentary from key FOMC members suggests that the Fed is prepared to pivot in 2024. While November was a historic month for markets, especially fixed income, the focus now shifts to the December FOMC meetings. The market is expecting rate cuts to start in March, with five total cuts priced in for 2024. Given the sharp repricing of the yield curve last week in response to the slate of dovish Fedspeak, we believe the bar is high for the FOMC to signal more cuts than what the market is currently pricing.
Featured Insights
Fixed Income
Issuance and Inflation Concerns Abate, Providing Relief for Bonds — Fixed Income Outlook in 5 Charts
November 22, 2023 -- Bond markets found some relief in recent weeks as the Treasury’s bond issuance calendar signaled their intention to slow the pace of issuance versus . . .
Fixed Income
Bond Markets Rejoice as Inflation Moderates
November 20, 2023 -- Last week produced a flurry of inflation data points, and the bottom line is that inflation is moderating but . . .
Fixed Income
Money Moves: What Policy Means for Markets
November 6, 2023 -- With the near-term risk of Treasury issuance receding, a Fed that is increasingly focused on an economic slowdown, and . . .