ECB May Need Bigger Response to Fed After Hot German Inflation Report
(Tuesday Market Open) Equity index futures were pointing to a lower open as investor hesitancy continued ahead of tomorrow’s Federal Open Market Committee (FOMC) interest rate decision. Potential Market Movers The FOMC meeting begins today with the spotlight on how high members will raise the overnight rate tomorrow. The 2-year Treasury yield was already up another two basis points before the market open, taking the yield to 3.97%. The 10-year Treasury yield (TNX) was up five basis points to 3.55%. Before the open housing starts came out much stronger than expected in August, growing 12.2%. Starts were down steeply in July, so the larger August number is likely spillover. However, the more forward-looking building permits fell 10% for the month, lower than expected. As mortgage rates continue to climb, the future of housing is still in question. Additionally, the yield curve is steepening this morning which could send mortgage rates even higher. The steeper curve is helping to push the U.S.
ECB May Need Bigger Response to Fed After Hot German Inflation Report
(Tuesday Market Open) Equity index futures were pointing to a lower open as investor hesitancy continued ahead of tomorrow’s Federal Open Market Committee (FOMC) interest rate decision. Potential Market Movers The FOMC meeting begins today with the spotlight on how high members will raise the overnight rate tomorrow. The 2-year Treasury yield was already up another two basis points before the market open, taking the yield to 3.97%. The 10-year Treasury yield (TNX) was up five basis points to 3.55%. Before the open housing starts came out much stronger than expected in August, growing 12.2%. Starts were down steeply in July, so the larger August number is likely spillover. However, the more forward-looking building permits fell 10% for the month, lower than expected. As mortgage rates continue to climb, the future of housing is still in question. Additionally, the yield curve is steepening this morning which could send mortgage rates even higher. The steeper curve is helping to push the U.S.