Fed’s Resolve is Proving to be the Right Call as Inflation Pressures Build

Last Week: Interest rates were mixed on the week, while equities were higher, having recovered ground lost at midweek. The yield on the US 10-year Treasury note rose three basis points from last Friday, to 2.96%, backing off from a 3.0259% high hit on Wednesday. 1-month LIBOR staged a steady climb all week, finishing at […]

Q1 GDP and a 3% 10-year in Focus

Last Week: Interest rates and equities rose modestly, boosted by broad strength in commodities and a strong start to the corporate earnings season. The yield on the US 10-year Treasury note jumped 11 basis points to 2.93% as 1-month LIBOR rose to 1.8982% from 1.8943% the week prior. Oil prices slipped back from three-year highs […]

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Borrow Fixed or Floating? Your Road Map to the Right Decision

In our decades of assisting companies in their management of interest rate risk, we hear one question frequently: “I’m conservative and only borrow at a fixed interest rate. Why should I care about hedging interest rate risk?”. It’s a fact that floating rate debt typically represents a small percentage of a company’s debt load. However, […]

What the Flat Yield Curve Means for Borrowers

Last Week: Interest rates were mixed while equities climbed despite lingering worries over trade conflicts and a potential military strike against Syria. The Mideast tensions boosted oil prices to their highest levels since 2014, with West Texas Intermediate Crude oil fetching $67.50 a barrel, up $5 from a week ago. The yield on the US […]

Trade War Fog to Stunt Rates Move Higher

Last Week: US interest rates rose while equities were mixed, both buffeted by increasingly unnerving rhetoric from US and Chinese officials on trade and tariffs. The yield on the US 10-year Treasury note rose 6 basis points on the week to 2.78% from 2.72% the week prior. 1-month LIBOR continued its steady march higher, albeit […]

Equities to Drive Rate Trajectory for Now

Last Week: Interest rates were mixed, and equities saw little net change on the week amid choppy, headline-driven markets. News that the US and China may avoid all out-trade war drove markets early in the week, while a continued focus on privacy issues undermined mega-cap tech shares and pushed bond yields lower late in the […]