Municipal Market Update – July 2019

During July, the FOMC voted to cut the current target fed funds rate by .25% to 2.0-2.25% for the first time since the Great Recession.  Fed chairman Jerome Powell firmly expressed a level of optimism surrounding the current economic outlook in the US and stated concerns surrounding inflation and global economic growth as major factors in the decision to cut rates. Currently, the treasury yield curve is inverted out to 10 years, which has been thought of as a potential leading indicator of past recessions, although not all inverted yield curves necessarily precede downturns in the economy.

Municipal G.O. Yield Curve

Municipal G.O. Yield Curve - July 2019

Our Municipal Market Update is data-driven, one page sheet that is intended to give you an overview of key interest rates – both floating and swap-to-fixed as well as the credit spreads of key local and state entities with data as of May 31, 2019. It is written for those making credit and investment related decisions for municipalities and non-profit institutions. If you have additional questions or would like to learn more about our municipal advisory and investment banking services, visit our Municipal Advisory page and contact Michael Stone, CFA.

Click here to access our Municipal Market Update.