While fundamentals remain strong ? with credit upgrades outpacing downgrades by 3.5 times so far in 2024 ? technical factors have been "less supportive," Principal Asset Management strategists said in a report.
* Central bank committed to 3% inflation target despite current 4.47% rate. * Inflation driven by stronger-than-expected economic activity. * Board members emphasize data-dependence and no guidance on next steps. * Markets predict 92% chance of 50 basis point hike next month.
* Optimism on US outlook broadening, central bank chief says. * Ueda says markets still unstable and volatile. * BOJ must also consider factors driving yen moves, he says. * Finance minister warns about excessive yen volatility. * IMF urges Japan's central bank to hike rates gradually. By Leika Kihara.
* U.S. jobless claim fall in latest week. * U.S. business activity rises in October. * U.S. five-year TIPS auction shows lackluster demand. By Karen Brettell.
* Euro and yen strengthen as dollar pauses after rally. * Fed and ECB rate cut expectations diverge. * U.S. jobless claims fall, supporting slower Fed rate cuts. * ECB policymakers suggest gradual rate cuts amid inflation concerns. * BOJ Governor Ueda links yen fall to U.S. economic optimism. By Chuck Mikolajczak.
* BANK OF CANADA SAYS EFFECTIVE OCT 25, AGGREGATE CASH VALUE AMOUNT OFFERED IN EACH OVERNIGHT REPO OPERATION WILL CHANGE TO A MINIMUM OF C$8 BILLION Source text: https://www.bankofcanada.ca/2024/10/bank-canada-announces-change-overnight-repo-operations/
Brazil's government will make announcements soon that will partly address financial markets' fiscal concerns that are affecting the country's risk premium, central bank chief Roberto Campos Neto said on Thursday.
Federal Home Loan Mortgage Corp (FMCC) : * FREDDIE MAC PRICES APPROXIMATELY $272.2 MILLION SLST SECURITIZATION. * Federal Home Loan Mortgage Corp (FMCC) - PRICES $272.2 MILLION SLST SERIES 2024-2 SECURITIZATION Further company coverage:
Freddie Mac today announced the pricing of the Freddie Mac Seasoned Loans Structured Transaction Trust Series 2024-2, a securitization of approximately $272.2 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans.
Bank of Japan Governor Kazuo Ueda said on Thursday optimism over the U.S. economic outlook was broadening but markets remained unstable, offering a mixed view on whether risks to his country's economy were subsiding.
* Canadian dollar weakens 0.1% against the greenback. * Touches its weakest since Aug. 5 at 1.3868. * Price of US oil falls 1% * 10-year yield eases 3.5 basis points. By Fergal Smith. The Canadian dollar edged down to an 11-week low against its U.S. counterpart on Thursday as investors bet the Bank of Canada would need to cut interest rates further to bolster a sluggish domestic economy.
International Monetary Fund Managing Director Kristalina Georgieva warned on Thursday that the world is in danger of becoming mired in a low-growth, high-debt path that will leave governments with fewer resources to improve opportunities for their people and tackle climate change and other challenges.
* Georgieva says low growth, high debt could sap fiscal resources. * She says people are dissatisfied with economic situation. * IMF, World Bank meetings clouded by US election concerns. By David Lawder.
Brazil's central bank director for licensing and resolution Renato Gomes said on Thursday the monetary authority is committed to reach its inflation target of 3%. At an HSBC event in Washington, Gomes also said the fiscal outlook is the main driver to risk premium in the local yield curve.
Finance chiefs from the G20 expressed optimism for achieving a "soft landing" for the global economy and urged resistance to protectionism, according to a final communique released on Thursday that retained the key points of a draft document.
There are no signs pointing to a regime of fiscal dominance in Brazil, despite market anxiety surrounding public accounts, and the central bank is monitoring the situation, two policymakers said this week. Fiscal dominance is an economic condition characterized by a lack of government budgetary control, in which monetary policy loses its effectiveness in controlling inflation.
Federal Home Loan Bank of Atlanta today released preliminary unaudited financial highlights for the quarter ended September?30, 2024. Operating Results for the Third Quarter of 2024. Financial Condition Highlights. Reliable Source of Liquidity. Commitment to Affordable Housing and Community Development. Dividends.
A group of funds backed by the world's 20 largest economies aimed at financing climate transition projects needs to be more targeted and operate with greater efficiency to improve the slow pace of disbursements, according to a report on Thursday from the G20's sustainable finance working group.
* IMF says Asian economies to remain world's growth engine. * Trade fragmentation clouds region's growth outlook. * Huge public debt makes fiscal expansion in Asia difficult. By Leika Kihara.
U.S. mortgage rates increased for a fourth straight week this week, suggesting the housing market could remain on the back foot for some time even as the Federal Reserve cuts interest rates. The average rate on the popular 30-year fixed-rate mortgage rose to 6.54% from 6.44% last week, mortgage finance agency Freddie Mac said on Thursday.
U.S. mortgage rates increased for a fourth straight week this week, suggesting the housing market could remain on the back foot for some time even as the Federal Reserve cuts interest rates. The average rate on the popular 30-year fixed-rate mortgage rose to 6.54% from 6.44% last week, mortgage finance agency Freddie Mac said on Thursday.
* IMF expects central bank's policy rate to hit 1.5% in 2027. * Srinivasan says high rates could lead to spillover effects. * Says Japan committed to flexible foreign exchange regime. By Leika Kihara.
Up to $475 million of unrated revenue bonds will be sold to purchase, expand, and renovate the Stanley Hotel, which inspired Stephen King's The Shining.
?Freddie Mac today released the results of its Primary Mortgage Market Survey?, showing the 30-year fixed-rate mortgage averaged 6.54 percent. ?The continued strength in the economy drove mortgage rates higher once again this week. News Facts The PMMS? is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit.
* U.S. jobless claims fall, supporting slower Fed rate cuts. * ECB policymakers suggest gradual rate cuts amid inflation concerns. * Japanese yen rises as Finance Minister warns against currency speculation. By Chuck Mikolajczak.
* Euro zone composite PMI stays in contraction. * ECB policymakers differ on December rate cut size. By Samuel Indyk. Euro zone government bond yields fell for a second day on Thursday after business activity data confirmed growth is set to remain sluggish in the fourth quarter, supporting the case for further European Central Bank rate cuts.
* Vasle calls for 'measured' moves. * Kazaks defends 'meeting-by-meeting' mantra. * Nagel argues against hasty decisions. By Balazs Koranyi. Three European Central Bank officials tried to cool market speculation on bigger interest rate cuts on Thursday, urging the ECB to proceed gradually or at least keep its options open.
The Chicago City Council this week approved a plan to refinance $1.5 billion of the city's debt. The city expects to issue the bonds in the fourth quarter.
The Federal Home Loan Bank of Pittsburgh announced today unaudited financial results for the third quarter and nine months ended September 30, 2024. Financial Highlights: Credit Products Highlights: Community Investment Products Highlights: Statements of Income FHLBank?s net income totaled $134.4 million for the third quarter of 2024, compared to $156.1 million for the third quarter of 2023.
Company to Host Conference Call WASHINGTON, Oct. 24, 2024 Fannie Mae today announced plans to report its third quarter 2024 financial results on Thursday morning, October 31, 2024, before the opening of U.S. financial markets. Fannie Mae has scheduled a conference call to discuss the company's results at 8:00 a.m., ET, on October 31, 2024.
AM Best has affirmed the Financial Strength Rating of B++, the Long-Term Issuer Credit Rating of ?bbb?, and the Vietnam National Scale Rating of aaa.VN of BIDV Insurance Joint Stock Corporation. The ratings reflect BIC?s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The U.S. private sector continues to display robust growth signals, according to the latest data from S&P Global?s Purchasing Managers? Index for October. The surveys indicate that business activity, particularly in the services sector, exceeded expectations, while manufacturing contracted at a slower rate than anticipated.
* Weekly jobless claims drop 15,000 to 227,000. * Continuing claims rise 28,000 to 1.897 million. * New home sales increase 4.1% in September. * Median new house price unchanged at $426,300 from year ago. By Lucia Mutikani.
The Bank of Canada's annual economic growth forecast is overly optimistic, economists said, and another large interest rate cut this year will likely be required to boost growth. Economists widely expected the BoC to lower its annual gross domestic product forecast when it released its quarterly monetary policy report on Wednesday, after a spate of uninspiring growth data.
AM Best has upgraded the Financial Strength Rating to B from B- and the Long-Term Issuer Credit Rating to ?bb? from ?bb-? of Tower Bonding and Surety Company. The ratings reflect Tower Bonding?s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
Federal Reserve Bank of Cleveland President Beth Hammack said Thursday inflation pressures have been easing but still have yet to return to where they need to be. "We have made good progress but inflation is still running above the [Federal Open Market Committee's] 2% objective," Hammack said at conference on inflation issues held by her bank.
Benchmark 10-year Treasury yields fell from a three-month high on Thursday after reaching levels that drew buying interest, though the market is expected to remain under pressure ahead of next week's jobs report for October and the November U.S. elections.
WASHINGTON, Oct. 24, 2024 Fannie Mae?today announced the winning bidder for its twenty-fifth Community Impact Pool of non-performing loans. The CIP awarded in this most recent transaction includes 29 loans with an aggregate UPB of $7,175,159; average loan size of $247,419; and weighted average note rate of 4.93%. The cover bid, which was the second highest bid, for the CIP was 90.85% of UPB.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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