“The inflation data continues to present stickier in the short term with the latest being Friday’s PCE Index. Interest rate markets have been repricing and rightly so following the employment number earlier this month. And of late we are beginning to see risk assets adjust. It’s a long year ahead. Stay tactical and practical with the Fed’s terminal rate now closer to 5.5%. Relative the recent Fed speak rate markets are more balanced and reflective. We are respectful and have been on board with the recent repricing yet remain reticent to extrapolate this window of time as a given for the remainder of 2023. Good luck out there!”

Listen to Monday Minutes with Gregory Faranello, CFA–Head of U.S. Rates at AmeriVet Securities.