The Daily Advisor: April 15, 2024
Three Things To Know Today
The April edition of our Community First Newsletter is available! Learn the latest happenings from our Community Investment team, including a feature on our Community First Housing Counseling Resource Program, a Affordable Housing Program (AHP) General Fund update, and increased funding for our Downpayment Plus® (DPP®) program.
Sign-up for complimentary Mortgage Partnership Finance® (MPF) webinars and receive invaluable information and training from the industry's most-respected voices.
The U.S. Government Accountability Office (GAO) recently published a report on the actions of the FHLBanks during the spring 2023 bank failures that disrupted the financial markets. The Council of Federal Home Loan Banks, the public voice of the FHLBank System, applauds the findings of the report.
Market Commentary
Equities declined while U.S. Treasuries rallied, recovering some of the losses from early in the week that followed the Consumer Price Index (CPI) report. Treasuries posted gains overnight as geopolitical concerns continued and China reported a larger than expected drop in exports and a decline in imports. Yields continued to decline after markets opened, moving lower through most of the morning session. In the afternoon, yields edged modestly higher off their session lows but ultimately finished 4-7 basis points (bps) lower across the curve.
The University of Michigan's consumer sentiment index fell 1.5 points to 77.9 in the preliminary reading for April. The Current Economic Conditions Index dropped 3.2 points to 79.3, while the index of consumer expectations edged 0.4 points lower to 77.0. The one-year inflation expectations rose to 3.1% in April, up from 2.9% in March likely driven by gas prices. The 5-year inflation expectations also increased during the month, rising to 3.0% from 2.8% in March.
Import prices rose by a greater than expected 0.4% in March, beating consensus expectations of 0.3% and the 0.3% increase in February. Export prices increased 0.3% in March, a slower rate than the downwardly revised 0.7% increase in February. Year-over-year import prices are up 0.4% and export prices are down 1.4%.
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