The Daily Advisor: May 1, 2024

Three Things To Know Today 

We are launching a new internal transfer service in eBanking this month and are hosting our first webinar on Thursday to summarize the internal transfer service updates, walk through the new features, and answer questions. Visit the eBanking message center through fhlbc.com to learn more.

Late default reporting fees are assessed to participating financial institutions (PFIs) and servicers who fail to upload a complete and accurate Exhibit B on time. In our new white paper, we review the default reporting requirements and offer common causes of the late default reporting fee and their corresponding remedies.
 
Sign-up for complimentary Mortgage Partnership Finance® (MPF) webinars and receive invaluable information and training from the industry's most-respected voices.


Market Commentary

Treasuries sold off and equities finished the day lower, as markets await the upcoming Federal Open Market Committee (FOMC) decision, which could affect rate cut expectations for the rest of the year. Yields started the day on a slightly lower note and widened their losses after the release of the Employment Cost Index report. Late-morning trade saw a small bounce, but eventually treasuries gave way to renewed selling that sent yields to new highs into the close. The 2s10s spread expanded by one basis point to -35bps.

The S&P Case-Shiller Home Price index increased by 7.3% year-over-year in February - the highest rate since October 2022 - and was well above market expectations of a 6.6% rise. Prices rose the most in San Diego (11.4%), Chicago (8.9%), and Detroit (8.9%). Month-over-month prices inclined 0.9% with 19 out of 20 markets seeing increases. 

Chicago PMI dropped to 37.9 in April, down from 41.4 in the previous month. The latest reading indicated that Chicago's economic activity contracted for the fifth consecutive month.

 

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.

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