The Federal Reserve's Bank Term Funding Program saw a new record in lending in the first week of December, with loans reaching $135.8 billion. The Secured Overnight Financing Rate (SOFR) hit a record high of 5.39% on December 27, matching the previous high. Continuing jobless claims in the US hovered near two-year highs at the end of 2023. Initial jobless claims rose by 12,000, reaching 218,000 for the week ending December 23. Meanwhile, wholesale advance inventories in November 2023 were $895.7 billion, down 0.2% from October 2023. The labor market continues to cool in the fourth quarter, with a resilient but increasing level of initial applications for unemployment benefits, indicating a solid labor market. Banks borrowed a record amount from the Fed's backstop facility, driven by increasing wagers on interest-rate cuts, as the real cost of borrowing in China, accounting for inflation, hit a nearly three-year high amid downward price pressure.
US overnight funding rate hits record high amid year-end volatility https://t.co/g5Zylnp4tY https://t.co/LcKr5zv0r0
⚠️ US OVERNIGHT FUNDING RATE HITS RECORD HIGH AMID YEAR-END VOLATILITY A gauge measuring the borrowing costs on loans between banks and other participants in the U.S. repurchase agreement (repo) market hit its highest level since it was launched about five years ago, New York…
SOFR Suddenly Soars To Record High As Key Funding Spread Hints At Imminent Liquidity Crunch https://t.co/csi6fd4ikU
#SOFR $SOFR goes to 5.4%, new high. 10 BPS above Rev Repo facility and 10 bps below SRF https://t.co/QkYmikNQEl
*SOFR FIXES AT RECORD HIGH 5.40% AS OF DEC. 28: NY FED
The real cost of borrowing in China, which takes inflation into account, hit the highest level in almost three years in China amid growing downward pressure on prices. https://t.co/YQ6sA9D1e8 https://t.co/59amMFDbpj
Banks borrowed a record amount from the Fed’s newest backstop facility in the most recent week as increasing wagers on interest-rate cuts made it a more attractive choice. https://t.co/4O46GsdQHc via @markets
Banks borrowed a record amount from the Fed’s newest backstop facility, per Bloomberg.
Banks borrowed a record amount from the Fed’s newest backstop facility in the most recent week as increasing wagers on interest-rate cuts made it a more attractive choice. https://t.co/pHv5lj3KgC
🔴 FED BANK TERM FUNDING LOANS $135.8 BLN IN WEEK ENDED DECEMBER 27TH AFTER $131.3 BLN.
Fed primer du jour: “The Secured Overnight Financing Rate, or SOFR, is a reference rate connected to transactions of overnight repurchase agreements. When funding costs rise it tends to drive SOFR higher as well.” Critical detail: Replaced LIBOR cc @TheBondFreak @business https://t.co/52bfa4rlxm
BREAKING: Initial applications for US unemployment benefits increased in the week leading up to Christmas, while remaining at a level that is consistent with a resilient labor market https://t.co/fHgYCGkP4p https://t.co/Ce2gx7fbsI
US applications for jobless benefits rise but labor market remains solid https://t.co/lucucaEdYh
New US jobless claims rise again as labor market cools https://t.co/qzMjToSB69 https://t.co/jlDTCUg23P
⚠️ NEW US JOBLESS CLAIMS RISE AGAIN AS LABOR MARKET COOLS The number of Americans filing initial claims for unemployment benefits rose last week, indicating the labor market continues to cool in the year's fourth quarter. New state unemployment benefit claims rose by 12,000…
Initial applications for US unemployment benefits increased last week to a level that remains consistent with a resilient labor market. https://t.co/GZnN8dCUQ3
Continuing Jobless Claims Hover Near Two-Year Highs At End 2023 https://t.co/3tgN0dGCDS
#Wholesale advance #inventories were $895.7B in November 2023, down 0.2% from October 2023 (seasonally adjusted). https://t.co/qZYlxNEIvs #CensusEconData https://t.co/akU6l7oBS2
USA Initial Jobless Claims 218K Vs 210K Est.; 206K Prior USA Continuing Jobless Claims 1,875K Vs 1,875K Est.; 1,861K Prior U.S. Wholesale Inventories (MoM) -0.2% Vs -0.2% Est.; -0.4% Prior USA Goods Trade Balance For November -90.27B Vs -88.40B Est.; -89.56B Prior https://t.co/X4H5qbIZLF
US CONTINUED JOBLESS CLAIMS ACTUAL 1.875M (FORECAST 1.875M, PREVIOUS 1.865M)
Unemployment Insurance Weekly Claims Initial claims were 218,000 for the week ending 12/23 (+12,000). Insured unemployment was 1,875,000 for the week ending 12/16 (+14,000). https://t.co/ys7Eg5LKAW https://t.co/fTf370q6dA
SOFR spiked to 5.39% today. https://t.co/rhBlfU2smb
🔴 SOFR FIXES AT 5.39% AS OF DECEMBER 27, MATCHING RECORD HIGH.
Lending via the Fed's Bank Term Funding Program hit a new record in the first week of December https://t.co/gERbU7oFPc https://t.co/NpJiDPfo1j