Solutions

1. 2024 AHP General Fund Now Open
The Affordable Housing Program (AHP) General Fund is now open for applications. In 2024, FHLBank Chicago is increasing the maximum grant per project to $2M and expects to award over $48.8M to the highest-scoring eligible applications.

2. Institutional Insights Webinar - Banking Industry Trends in Q1 2024
Join us May 23 at 3 p.m. for our next Institutional Insights Webinar! In our May presentation, we will focus on the banking industry trends we saw this past quarter.

3. eBanking Cash Management Experience | New Internal Transfer Service Now Available
As a part of our ongoing improvements to enhance your cash management experience, our new eBanking internal transfer service is now available. To learn more, log into eBanking through fhlbc.com and read our post in the message center – which includes an on-demand webinar and how-to guide.

Market Commentary

Equities and Treasuries both sold-off with shorter tenors leading the decline. The day started with modest gains across most tenors. The initial gains pressured yields below their respective 200-day moving averages. However, Treasuries began to retreat shortly after the open, despite disappointing U.S. economic data. Treasuries continued to retreat through the morning, even after a lackluster industrial production report for April. Selling pressure eased later in the day, but Treasuries still ended at session lows.

In April 2024, building permits in the United States fell by 3% to a seasonally adjusted annual rate of 1.440 million, the lowest since December 2022 and below market expectations of 1.480 million, according to a preliminary estimate. Permits for buildings with five or more units dropped by 9.1% to 408,000, the lowest level since October 2020, while single-family authorizations decreased by 0.8% to an eight-month low of 976,000. Regionally, permits declined significantly in the Midwest (-18.1% to 167,000) and the West (-14.4% to 292,000), but increased in the South (4.2% to 827,000) and the Northeast (5.5% to 154,000).

Disclaimer

The data and valuations provided in this document are for information purposes only and are provided as an accommodation and without charge. The Federal Home Loan Bank of Chicago makes no representations or warranties about the accuracy or suitability of any information in this document. This document is not intended to constitute legal, investment, or financial advice or the rendering of legal, consulting, or other professional services of any kind.