The Daily Advisor: April 26, 2024
Three Things To Know Today
1. Advance Discounts Extended Through June 2024 - Call to Take Advantage
In our ongoing commitment to support your liquidity needs, we are extending our long-term, 5 basis point (bps) discount on callable, fixed-rate, and amortizing advances through the end of the quarter, June 30, 2024. To take advantage of this, you need to call us directly at 855.345.2244, option 1.
2. Register Today to Learn About Our New Internal Transfer Service
We are launching a new internal transfer service in eBanking this May and are hosting two webinars on May 2 and May 7 to summarize the internal transfer service updates, walk through the new features, and answer questions. Register for the first webinar though the link above and visit the eBanking message center through fhlbc.com to learn more.
3. April Institutional Insights Webinar On-Demand Recording
Did you miss yesterday’s Institutional Insights Webinar? Watch the on-demand recording where our presentation covered markets, rates, and an economic update.
Market Commentary
Equities declined while Treasuries sold-off as markets weighed the slower economic growth and greater-than-expected inflation data in the advance first quarter gross domestic product (GDP) report. Treasuries were little changed overnight but began to sell-off in the morning. The sell-off continued as the advance GDP data was released, but as markets digested the report, yields declined. Yields edged lower in the morning and moved mostly horizontally throughout the afternoon, ending 4-7 bps higher as markets look ahead to Friday's release of the Federal Reserve’s (Fed's) preferred inflation measure.
Q1 GDP grew at an annualized rate of 1.6%, missing expectations of 2.5% and growing at a slower rate than Q4's 3.4% increase. The weaker-than-expected advance reading reflected slower growth in consumer spending, exports, and government spending, while imports and residential fixed investment accelerated. The personal consumption expenditures (PCE) price index rose 3.4% in Q1, following a 1.8% increase in the prior quarter. Excluding food and energy, core PCE price index also accelerated rising 3.7% after Q4's 2.0% increase.
Initial jobless claims declined 5K to 207K for the week ending April 20, down from the prior week's unrevised level of 212K. The four-week moving average fell 1.25K to 213.25K during the week. Continuing claims decreased 15K to 1.781M in the week ending April 13, while the insured unemployment rate remained unchanged at 1.2%.