January 31, 2023
Over in bond land, Treasuries are unchanged ahead of the opening bell Tuesday as investors await the start of the Federal Reserve’s (Fed) meeting today. Market participants are closely watching the Fed for guidance on future interest rate policy and their expectations for the broader economic developments, including inflation and the likelihood of a recession. The yield on the benchmark 10-year note, the 30-year bond yield, and the more policy-sensitive two-year note are unchanged at 3.54%, 3.65% and 4.24%, respectively. On Monday, Treasury yields gained momentum ahead of the Fed’s first 2023 meeting. The yield on the 10-year note increased three basis points (0.03%) to 3.54%, while the 30-year bond yield gained two basis points (0.02%) at 3.65%. The yield on the two-year note climbed four basis points (0.04%) to 4.24%.
On the data front, November’s FHFA House Price Index is forecasted to slightly decline to -0.5% month-over-month compared to October’s 0% reading. Meanwhile, November’s S&P CoreLogic Case-Shiller 20-City is expected to decline 0.7% month-over-month and increase 6.7% annually. Rounding out the docket, Conference Board Consumer Confidence for the month of January is estimated to increase by 0.7 to 109.
Municipal Market Commentary
The Bloomberg 30-day visible supply fell $732 million to $1.285 billion on Monday, below the 12-month average of $9.324 billion.
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