Harris Vice President Pool Narrows To Shapiro, Walz - Reuters

US interest rate futures price in inter-meeting Fed cut

August 5, 2024 12:03 PM EDT

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - Futures on the Secured Overnight Financing Rate (SOFR) and the Federal funds rate, which measure expectations of Federal Reserve monetary policy moves, on Monday priced in an inter-meeting interest rate cut.

The August 2024 SOFR futures have factored in the likelihood that the Fed will cut interest rates by at least 25 basis points (bps) this month. The September futures, on the other hand, have priced in a 100% chance of at least a 50 bps rate reduction.

SOFR, a measure of the cost of borrowing cash overnight, was at 5.35% as of late... More

Yields rebound, curve inverts again after brief positive shift

August 5, 2024 7:03 AM EDT

By Karen Brettell

NEW YORK (Reuters) -U.S. Treasury yields rebounded from one-year lows on Monday on greater optimism over the U.S. economy and a closely watched part of the yield curve reinverted, after briefly turning positive for the first time in two years.

Yields tumbled earlier on Monday on recession fears, following an unexpected increase in the unemployment rate and fewer than expected job gains in Julys employment report on Friday.

That caused a rapid repricing of expectations on when and how far the Federal Reserve will cut interest rates.

But... More

Change in Nonfarm Payrolls (Jul) 114K vs 175K Expected, Unemployment Rate 4.3%

August 2, 2024 8:30 AM EDT

Change in Nonfarm Payrolls (Jul) 114K vs 175K Expected, Unemployment Rate 4.3%

The unemployment rate rose to 4.3 percent in July, and nonfarm payroll employment edged up by 114,000, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in health care, in construction, and in transportation and warehousing, while information lost jobs.

This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry. For more information about the concepts and statistical... More

Treasury 10-year Yield Falls Below 4% To Lowest Since February - Bloomberg

August 1, 2024 10:01 AM EDT

Treasury 10-year Yield Falls Below 4% To Lowest Since February - Bloomberg

... More