The Mideast situation remains fluid, and fresh developments are prone to move the rates market. The past week’s data was not very influential but continued to portray a relatively steady, albeit non-dynamic, labor market and ongoing potential inflation pressures. The jobs report to be released just prior to this edition hitting inboxes may, if considerably off consensus expectations, move rates. Looking forward to next week, the inflation data will be closely scrutinized by the markets.

Back by popular demand, Frank Farone, Managing Director of Darling Consulting Group, returns to join us once again for an informative session focused on Liquidity and Asset/Liability Management. Frank will address key challenges and provide actionable strategies to help FHLBNY members stay resilient and take advantage of the new rate environment now and in the months/years to come.

We are now experiencing a “higher for longer” phase in the interest-rate cycle, accompanied by an inversion in the short-to medium terms followed by a steepening (see following chart). The Fed is still in a restrictive posture, but market expectations indicate a near-term easing, however, uncertainty surrounding the potential of future heightened growth leading to elevated inflation is causing steepening at the longer-end of the curve…