June 11, 2020 Headlines

Risk markets are weaker this morning on a smaller than expected decline in continuing jobless claims, as well general concern on rising COVID-19 cases in parts of the country. Long-end Treasuries are well bid again to start the day following the dovish tone from the Fed yesterday. There were not any major surprises from the FOMC, and they made it abundantly clear that the current level of monetary support isn’t going away anytime soon. The official statement pledged to keep Treasury and MBS purchases “at least at the current pace,” effectively flooring bond buying at $80 billion per month and $40 billion per month, respectively. The FOMC also provided its first Summary of Economic Projections since December, and the median participant forecast for the fed funds rate showed no change through 2022. As Fed Chair Powell has made clear in the past, projections that far out aren’t really meaningful, but the Fed is clearly doing its best to anchor forward rate guidance well into the future as the economy heals.

Jason Haley
Chief Investment Officer

Subscribe Today!

Subscribe to our email list and get the latest articles and announcements from ALM First.

Recent Articles

ALM First offers investment advisory services through ALM First Financial Advisors, LLC, which is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the firm by the SEC nor does it indicate that the firm has attained a particular level of skill or ability. The information contained herein does not constitute investment advice or a recommendation for you to purchase or sell any specific security. You are solely responsible for reviewing the content and for any actions you take or choose not to take based on your review of such content.Information contained herein was derived from third party sources as indicated. While such information is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. We have not and will not independently verify this information. Where such sources include opinions and projections, such opinions and projections should be ascribed only to the applicable third party source and not to ALM First.Statements herein that reflect projections or expectations of future financial or economic performance are forward-looking statements. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or actual performance. No representation or warranty can be given that the estimates, opinions or assumptions made herein will prove to be accurate. Any projections and forward-looking statements included herein should be considered speculative and are qualified in their entirety by the information and risks disclosed in the confidential offering document. Actual results for any period may or may not approximate such forward-looking statements. No representations or warranties whatsoever are made by ALM First Financial Advisors, LLC or any other person or entity as to the future profitability of investments recommended by ALM First Financial Advisors, LLC.