Fixed Income Update 25 Jul 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 25 July 2024
Cost of Funds Amid Potential US Political Direction
The data releases that influenced UST yield movements in the week of Jul 18-Jul 24, ‘24 are as follows:
• The number of people claiming unemployment benefits in the US rose by 10K to 243K.
• Philadelphia Fed Manufacturing Index in Jul ‘23 increased significantly to 13.9.
• The average rate for a 30-year fixed mortgage fell sharply by 12 bps to 6.77% as of Jul 18th.
• Meanwhile, the US Existing Home Sales in Jun ‘24 decreased to 3.89 mn.
Meanwhile, on the domestic side, the increase in economic liquidity or broad money (M2), the growing foreign appetite for tradable SBN, and the decline in the weighted-average-winner yield of SRBI also contributed to the movement of SUN yields last week.
Regards,
Fikri C Permana - KBVS Research