WS #15489
The Federal Reserve's September minutes confirmed expectations for another rate hike, driving 10-year Treasury yields to a 24-year record. This spike in borrowing costs is actively suppressing homebuilder and construction stocks, as well as consumer credit growth, which rose significantly less than expected in August. The market is now pricing in a 'higher for longer' environment that is actively damaging the housing and consumer sectors, overriding any previous hopes for a pause.
Rate Hike & Treasury Spike
The Federal Reserve's September minutes confirmed expectations for another rate hike, driving 10-year Treasury yields to a 24-year record. This spike in borrowing costs is actively suppressing homebuilder and construction stocks, as well as consumer credit growth, which rose significantly less than expected in August. The market is now pricing in a 'higher for longer' environment that is actively damaging the housing and consumer sectors, overriding any previous hopes for a pause.