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Rates Update

Published January 5, 2018  /  In Weekly Market Updates

Last Week's Market Moves

The December jobs report was the main event last week with the number coming in well below expections at 147,00.  Despite the soft number overall jobs production remains impressive, 2017 saw 2million jobs added and this is the 87th consecutive month of job gains.  The jobless rate held stady at 4.11%, and wages gained 0.3% for an overall gain of 2.6% on the year.  Wage growth and the lock of wage inflation continues to be a drag and is adding to the pressure holding yields down at the long end of the curve.





 


What to Look for This Week

Expect rates to continue to tick up as the equity market makes its steady march into the record books, weird political stuff may dampen rising rates.


 


1-month LIBOR Swap Rates**

MaturityAmortizationSwapMove
3 YearsBullet2.22%+ 6 bp
5 YearsBullet2.31%+ 7 bp
7 YearsBullet2.37%+ 7 bp
10 YearsBullet2.44%+ 4 bp
12 YearsBullet2.49%+ 6 bp
15 YearBullet2.54%+ 6 bp
20 YearBullet2.58%+ 5 bp

Treasury Market

TreasuriesYieldMove
2 Years1.96%+ 7 bp
3 Years2.06%+ 8 bp
5 Years2.29%+ 6 bp
10 Years2.48%+ 7 bp
30 Years2.81%+ 7 bp
Move signifies change in swap rates or treasuries since 12/29/2017

**Note: Rates above are mid-market swap rates as of NY market close 1/5/2018. All rates are subject to change. Dealer pricing may include additional swap fees, contact PRM for swap pricing analysis and a detailed report on pricing, pre-payment risk and swap fees.

Disclaimer: The purpose of this communication is to provide general information and estimates as of swap pricing for indicative purposes only. To obtain an independent swap quote and swap risk evaluations for a specific financing please call PRM Swap Desk with the terms of the proposed transaction. PRM offers independent pricing for interest rate swaps, caps, floors, swaptions as well as analysis of swap, fixed rate loan and insurance loan pre-payment risk.