- The 10-year U.S. Treasury bond yielded 4.24% at the end of last week
- Existing home sales declined 1.0% in September versus the prior month
- The Beige Book summarizes current economic conditions across the 12 Federal Reserve Districts
Top Three Market Headlines
Treasury Bond Yields Hit a Three-Month High: U.S. Treasury bond yields rose again last week, extending their recent ascent in the aftermath of the Federal Reserve's mid-September decision to cut its interest rate policy benchmark rate. The bellwether 10-year Treasury note closed the week yielding 4.24%, the highest level since mid-July and up from a year-to-date low of 3.62% on Sept. 16th, just prior to the Fed's decision to lower the target range for the federal funds rate. Notwithstanding the Fed's pivot to easier interest rate policy, recent stronger-than-expected economic and inflation data have pressured market yields higher.
Home Sales Fall to a 14-Year Low: Sales of existing homes in the U.S. fell in September for the sixth time in seven months, according to the National Association of Realtors. Declining 1% from the prior month, September sales totaled 3.84 million (seasonally adjusted annual rate), the lowest level in 14 years. Three out of four major regions in the U.S. experienced a drop in sales compared to August, with only the West seeing a rise. At the same time, the median existing home sales price increased 3.0% over the prior year to $404,500, the 15th consecutive month of year-over-year price gains.
Beige Book Reports Steady Economic Activity: The Federal Reserve last week released its most recent Beige Book, a periodic compilation of anecdotal information summarizing economic conditions across the 12 Federal Reserve Districts. Compared to the last report in early September, most districts reported little growth in economic activity, due in part to declining manufacturing activity. Inflation continued to moderate in most districts, though some reported that consumers' composition of purchases moved towards less expensive alternatives. In terms of employment, more than half of the districts reported slight or modest growth with the rest reporting little or no change.