5-Chart Friday (3/6/20)

By Charlie Bilello

06 Mar 2020


5 charts from the past week that tell an interesting story in markets and investing…

1. New All-Time Low in Mortgage Rates

It’s official…

The 30-Year Mortgage Rate in the US hit a new all-time low this week: 3.29%.

2. Let the Easing Begin…

In the first emergency move since 2008, the Fed cut rates by 50 bps to 1.00-1.25%. Joining the Fed in cutting rates were Australia, Saudi Arabia, Malaysia, Canada, and Hong Kong. Many more rate cuts are expected in the weeks and months ahead.

3. The Road Back to 0

The Fed is expected (>80% probability) to cut another 50 bps by the March 18th FOMC meeting, paving the way for a move back to 0%.

4. No More Real Yield

The Real 10-Year Treasury Yield (yield minus core CPI) moved down to -1.5% this week, its lowest level since July 1980. Back then the 10-year yield was 10.8% and core inflation was 12.4%.

5. The End of an Era

U.S. jobs grew for the 113th month in a row in February, by far the longest run in history. With a recession expected soon, this may be the end of an era.

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And that’s it for this week. Thanks for reading.

Have a great weekend everyone!

-Charlie

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About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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