Settlement Risk: Tuesday: CPI

To Estimated risk per 13.03.2023 20:43:00

Mortgage rates From Matthew Graham of Mortgage News Daily: Mortgage rates have fallen significantly, but lag behind other indicators

If you’re just in the know, or for some reason haven’t heard, the biggest news in the financial markets since last Friday has been the meteoric collapse of Silicon Valley Bank. While not necessarily a well-known name, SVB was the 16th largest bank in terms of assets and the 2nd largest bank failure in history after Washington Mutual 15 years ago.

Add to this the fact that the 3rd biggest bankrupt in history (Signature Bank) happened 2 days later, and it’s not surprising that there is some systemic risk panic in the financial markets (also known as a domino effect leading to additional turmoil).

If the market is calmer, why are rates still so low? This is due to a change in the market’s expectations regarding the Fed’s rate hike until the end of 2023. In particular, the market is now seeing the Fed hit a top rate that is more than 1.5% lower than it was at the start of last week! [30 year fixed 6.57%]
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• At 6:00 AM ET, NFIB Small Business Optimism Index for February.

• At 8:30 am February CPI from BLS. The consensus is to increase the CPI by 0.4% and increase the core CPI by 0.4%. The general consensus is that the CPI should rise by 6.0% year-on-year (y/y) and the core CPI by 5.5% y/y.

The post Settlement Risk: Tuesday: CPI first appeared on DEUV.

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