Credit Market Report

 June 26, 2017

30-year Treasury yield hovers near 7-month low: Treasury yields ended mixed on Friday as investors await more data for clues to how aggressive the Federal Reserve will be in tightening monetary policy amid recent weakness in inflation data.

Influencing Factors:

  • St. Louis Fed President James Bullard, a nonvoting member of the central bank’s interest-rate setting group and a well-known dove, said hiking interest rates may not be warranted in a “low growth, low-inflation and low-interest-rate regime.” He also suggested the Fed could wait out new economic data and not “pre-empt any of them.”
  • His remarks were in contrast to Cleveland Fed President Loretta Mester, a voter who is widely considered a monetary hawk, who said she wanted higher interest rates to prevent employment or inflation falling out of whack and that they would “keep the economy healthy, not to slow down the expansion,” according to a Reuters report.
  • “There is a substantial risk that the Fed’s opportunistic tightening campaign is a hawkish mistake, noted Joachim Fels, global economic adviser for Pacific Investment Management Co., or Pimco. “We are only one major adverse shock away from a serious deflationary scare.”

Fixed Rate Indices

Maturity Coupon Yield Change
2-year... 05/19 1 2/8% 1.340%   ( - )
5-year... 05/22 1 6/8% 1.758%   ( - )
7-year 05/24 2 0/8% 1.976%

  ( - )

10-year 05/27 2 3/8% 2.146%   ( - )
30-year 05/47 3 0/8% 2.715%   ( - )
Treasury Rates are as of 06-23-2017 as reported by The Wall Street Journal.

Prime Rate

Prime... 4.25%
Last effective change 6-15-2017

Floating Rate Indices

30-day LIBOR..... 1.22000%
90-day LIBOR..... 1.29328%
6-month LIBOR... 1.44500%
1-year LIBOR...... 1.73344%

London Interbank Offered Rates are as of 06-23-2017 as reported by The Wall Street Journal.

Spread Markets

Maturity Spreads Rate
2-year SWAP.... 20.80 bps 1.5480%
5-year SWAP.... 5.50 bps 1.8130%
7-year SWAP.... -2.50 bps 1.9510%
10-year SWAP... -4.00 bps 2.1060%

SWAP Rates are as of 06-23-2017 as reported by the Wall Street Journal.