Some cheery news from the Atlanta Fed honcho:
Bumpy and slow is how a top Federal Reserve official sees inflation’s trajectory this year. Translation: Don’t get your hopes up for rate cuts in the next few months.
Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committee’s policy decisions this year, told CNN in an exclusive interview that he is anticipating the nation’s inflation rate — which currently stands at around 3% — will be near “the lower twos” by the end of 2024.
“With that outlook, I really see the first move coming sometime in the summertime,” he said, regarding lowering interest rates that currently sit at a 23-year high.
Bostic said he’s been both surprised and pleased by the strength of the labor market. January’s monthly jobs report stunned economists with the 353,000 new jobs added, which was well above expectations, leaving the unemployment rate below 4% for the 24th consecutive month.
“The question is sort of what is the underlying implication for how fast inflation can get back to 2%?” he said, adding that current economic conditions could work against Americans by helping keep prices elevated. That’s because when unemployment is low, people have more money to spend — which makes it easier for businesses to raise prices.
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2114 % | 2,280.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2114 % | 4,373.8 |
| Floater | 10.68 % | 10.96 % | 32,165 | 8.76 | 2 | -0.2114 % | 2,520.6 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0479 % | 3,427.6 |
| SplitShare | 4.91 % | 7.13 % | 49,536 | 1.90 | 7 | 0.0479 % | 4,093.3 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0479 % | 3,193.8 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.6668 % | 2,641.0 |
| Perpetual-Discount | 6.51 % | 6.69 % | 50,128 | 12.93 | 33 | 0.6668 % | 2,879.9 |
| FixedReset Disc | 5.62 % | 7.74 % | 116,396 | 12.04 | 59 | -0.1606 % | 2,349.9 |
| Insurance Straight | 6.32 % | 6.48 % | 63,033 | 13.19 | 21 | 0.0193 % | 2,869.3 |
| FloatingReset | 10.03 % | 10.27 % | 34,772 | 9.21 | 3 | -0.1881 % | 2,599.4 |
| FixedReset Prem | 6.94 % | 6.70 % | 167,413 | 3.28 | 1 | 0.0395 % | 2,515.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.1606 % | 2,402.0 |
| FixedReset Ins Non | 5.42 % | 7.20 % | 93,904 | 12.42 | 14 | -0.0368 % | 2,620.0 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BIP.PR.A | FixedReset Disc | -13.59 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 15.39 Evaluated at bid price : 15.39 Bid-YTW : 11.37 % |
| IFC.PR.F | Insurance Straight | -7.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 18.90 Evaluated at bid price : 18.90 Bid-YTW : 7.14 % |
| TD.PF.B | FixedReset Disc | -3.96 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 7.26 % |
| BN.PR.T | FixedReset Disc | -2.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 15.00 Evaluated at bid price : 15.00 Bid-YTW : 9.29 % |
| GWO.PR.P | Insurance Straight | -1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.36 Evaluated at bid price : 20.36 Bid-YTW : 6.75 % |
| BIP.PR.E | FixedReset Disc | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 21.20 Evaluated at bid price : 21.20 Bid-YTW : 8.03 % |
| FTS.PR.F | Perpetual-Discount | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.12 Evaluated at bid price : 20.12 Bid-YTW : 6.23 % |
| BN.PF.J | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 8.33 % |
| BN.PR.R | FixedReset Disc | -1.26 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 14.92 Evaluated at bid price : 14.92 Bid-YTW : 9.33 % |
| IFC.PR.A | FixedReset Ins Non | -1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 18.96 Evaluated at bid price : 18.96 Bid-YTW : 7.06 % |
| NA.PR.S | FixedReset Disc | 1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.76 Evaluated at bid price : 20.76 Bid-YTW : 7.39 % |
| BMO.PR.Y | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 7.74 % |
| CU.PR.J | Perpetual-Discount | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 18.60 Evaluated at bid price : 18.60 Bid-YTW : 6.41 % |
| FFH.PR.I | FixedReset Disc | 1.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 17.09 Evaluated at bid price : 17.09 Bid-YTW : 9.04 % |
| IFC.PR.K | Insurance Straight | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.61 Evaluated at bid price : 20.61 Bid-YTW : 6.48 % |
| CU.PR.F | Perpetual-Discount | 1.25 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 17.75 Evaluated at bid price : 17.75 Bid-YTW : 6.36 % |
| FFH.PR.C | FixedReset Disc | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.43 Evaluated at bid price : 20.43 Bid-YTW : 8.37 % |
| SLF.PR.H | FixedReset Ins Non | 1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.06 Evaluated at bid price : 19.06 Bid-YTW : 7.12 % |
| BN.PF.I | FixedReset Disc | 1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.34 Evaluated at bid price : 20.34 Bid-YTW : 8.80 % |
| CU.PR.H | Perpetual-Discount | 2.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.31 % |
| MIC.PR.A | Perpetual-Discount | 2.73 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 18.80 Evaluated at bid price : 18.80 Bid-YTW : 7.32 % |
| POW.PR.A | Perpetual-Discount | 3.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 21.00 Evaluated at bid price : 21.00 Bid-YTW : 6.76 % |
| GWO.PR.Y | Insurance Straight | 4.68 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 17.90 Evaluated at bid price : 17.90 Bid-YTW : 6.39 % |
| PWF.PR.P | FixedReset Disc | 9.92 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 14.40 Evaluated at bid price : 14.40 Bid-YTW : 8.45 % |
| CU.PR.D | Perpetual-Discount | 16.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.10 Evaluated at bid price : 19.10 Bid-YTW : 6.44 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.H | FixedReset Ins Non | 226,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.06 Evaluated at bid price : 19.06 Bid-YTW : 7.12 % |
| BMO.PR.S | FixedReset Disc | 147,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 21.12 Evaluated at bid price : 21.12 Bid-YTW : 7.17 % |
| RY.PR.J | FixedReset Disc | 123,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.75 Evaluated at bid price : 19.75 Bid-YTW : 7.85 % |
| FFH.PR.I | FixedReset Disc | 87,700 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 17.09 Evaluated at bid price : 17.09 Bid-YTW : 9.04 % |
| BN.PF.B | FixedReset Disc | 53,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 8.31 % |
| SLF.PR.G | FixedReset Ins Non | 50,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-02-12 Maturity Price : 15.18 Evaluated at bid price : 15.18 Bid-YTW : 8.00 % |
| There were 16 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| BIP.PR.A | FixedReset Disc | Quote: 15.39 – 18.80 Spot Rate : 3.4100 Average : 2.1979 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 18.90 – 20.82 Spot Rate : 1.9200 Average : 1.1276 YTW SCENARIO |
| TD.PF.B | FixedReset Disc | Quote: 20.60 – 21.48 Spot Rate : 0.8800 Average : 0.4992 YTW SCENARIO |
| NA.PR.E | FixedReset Disc | Quote: 22.05 – 22.99 Spot Rate : 0.9400 Average : 0.5679 YTW SCENARIO |
| MFC.PR.L | FixedReset Ins Non | Quote: 19.55 – 24.06 Spot Rate : 4.5100 Average : 4.1790 YTW SCENARIO |
| NA.PR.W | FixedReset Disc | Quote: 18.88 – 19.90 Spot Rate : 1.0200 Average : 0.7040 YTW SCENARIO |