3 Things to Know:

• Rates fall to 15-month lows. Swap rates fell ~70 bps from July 1st to August 6th, reaching their lowest levels since May 2023. 
  
  
• FOMC opens door to September rate cut. The Fed acknowledged recent inflation progress and signaled the FOMC may consider a rate cut as early as September pending upcoming economic data. 

• Labor market weakness accelerates rate cutting expectations. Markets expect at least 100 bps of rate cuts by next February after the unemployment rate reached multi-year highs in June and July and new hiring fell near its slowest pace since December 2020.   

Explore More:

• June Service Sector Index (-7 bps)

• June Labor Data (-10 bps)
• CPI (-10 bps)
• PCE (-5 bps)
• FOMC Press Conference (-11 bps)
• Manufacturing Sector Index (-8 bps)
• July Labor Data (-22 bps)
• July Service Sector Index (+11 bps)