Capital Markets Research Brief: August 2024

Interest Rates Trend Lower, Paving Way for Invigorated Commercial Property Investment

Treasuries decrease amid softening market conditions. In the 90 days ended Aug. 9, the 10-year Treasury fell 50 basis points to the 3.9 percent range, its lowest level since a brief point in February of this year. This decline manifested as the prospects for upcoming interest rate cuts by the Federal Reserve gained momentum amid lower inflation readings and loosening labor market conditions. July’s slowdown in hiring, and resulting 20-basis-point increase in unemployment to a 33-month high of 4.3 percent, in particular prompted a short-term drop in the 10-year to 3.8 percent earlier this month. Rising unemployment, paired with a change in the Federal Reserve’s messaging at its last meeting, have convinced Wall Street that the Fed will cut its overnight lending rate in September. The possibility it will be a 50-basis-point reduction has also garnered more support.

Click on image below for your downloadable copy.