Market & Economic Recap
There was no surprise that Federal Reserve was the key player in this week’s markets. Fed is keeping interest rates unchanged at 0%-0.25% and continuing bond purchases at $120 billion a month. It went more specific on rate rises, predicting two 0.25% increases by the end of 2023. Bonds and technology stocks crashed.
However, Fed’s Overnight Reverse Repurchase Agreement (ON/RRP) Facility, which we introduced last week, has a different story. ON/RRP kept its soaring momentum and attracted another record high this week. Most importantly, the Fed meeting raised the interests of ON/RRP to 0.05%, resulting in more money returning back to Fed and stock markets sliding.
Credit Spreads Screening
In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.