This daily newsletter conveniently delivers financial and economic commentary from around the globe, updated FHLB Des Moines advance rates and Bank announcements right to your inbox.
Recent Economic Commentary
Scott Hofer, VP/Director - 7/28/2021
U.S. equities are a mixed bag this morning as investors continue to weigh earnings beats from megacap tech companies, the impact of the Covid-19 delta variant on global growth, and the potential for tighter monetary policy. On the economic data front, the advance trade in goods deficit increased 3.5% in June with exports increasing $0.5 billion and imports increasing $3.5 billion in June, respectively. Wholesale and retail inventories were up 0.8% and 0.3% in June and 10.2% and 3.7% year-over-year, respectively.
The Mortgage Bankers Association reported that mortgage applications increased 5.7% during the week ending July 23. The increase was due to the Refinance Index increasing 9% and the Purchase Index falling 2%. The 30-year fixed mortgage rate fell to its lowest level since February 2021 and the 15-year fixed rate fell to its lowest level since 1990.
Lastly, the FOMC meeting concludes today with an announcement from the committee and a press conference from Chairman Powell due this afternoon.
U.S. Treasury yields are higher this morning, with the 2-year Treasury yield up 0.4 basis point to 0.20%, the 5-year Treasury yield up 4.3 basis points to 0.73% and the 10-year Treasury yield up 2.3 basis points at 1.25%. Advance rates are higher on longer terms.