Credit Update:
Deposit Volatility Wanes but Funding Costs Still Pressuring Banks
Over a decade of low short-term rates led to complacency for depositors and banks with respect to deposits. The deposit crisis of March 2023 alerted the broader market to the slow burn of core deposits – outflows that preceded the frenzy – either slowly getting reallocated to higher yielding money markets or customers spending down saved stimulus.
by Laura Fox FEATURED MARKET DATA
Higher For Longer
The yield on the 10-Year US Treasury rose in August to its highest level since 2007. The month saw real yields rise even more and are now at the highest level since 2009. Real, or inflation-adjusted, yields reflect the difference between the expected levels of inflation and nominal Treasury yields. Myriad factors impact nominal and real yields including supply and demand.
by Laura Fox 