The Daily Advisor: January 24, 2025
Three Things To Know Today
1. Downrate Beta: Deposit Repricing and NIM Stabilization
Log into eBanking from fhlbc.com and visit the Message Center to read our latest white paper, where we examine recent rate-cutting and rate-hiking cycles, their effects on deposit betas, why the current cycle might differ, and offer funding and ALM strategies for institutions in a rate-cutting environment.
2. Registration Open | 2025 Member Meetings
Our 2025 Member Meetings are coming to a city near you this spring! Attendees will have an exclusive opportunity to enhance their business competitiveness by leveraging industry-relevant insights from meetings hosted conveniently in the region they serve. Register today!
3. Where Is the Economy Headed in 2025? | Banking on Connections Podcast
James Hotchkiss, FHLBank Chicago’s in-house economist, shares what he’s seeing in the market and economy in the early part of 2025 and into the coming months. Is there an expected path forward for interest rate cuts? Is the worst of inflation behind us? Will the housing market improve? Hear all this and more on our new episode!
Market Commentary
Equities rallied while longer-dated Treasuries faced pressure. The 5-year note and longer maturities started the day in the red, impacted by overnight selling tied to European sovereign debt. Despite a higher-than-expected rise in weekly jobless claims, selling persisted through midday, pushing the long bond to session lows before a late rebound lifted the 10-year back to its opening level.
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