Fed raises tapering, debt ceiling a concern - Snapshot report

<h1>Capital markets snapshot overview</h1> <p>The Fed has finally mentioned tapering, so it looks as though it will begin by year-end.</p> <p>In the last week, from Sept. 20 to today, Sept. 27, rates are up about 20 basis points.</p> <p>Rates this week will likely be a volatile, says Analyst Bryan Kern, because key figures will be released, starting with consumer confidence numbers tomorrow, Sept. 28. GDP and core PCE are released on Thursday, and then PCE deflator on Friday.</p> <p>Analyst Jay Saunders says the anticipated increase in short-term rates has moved forward a bit. He discusses expected rate increases going forward. Jay also presents current rates, including the one-month LIBOR, SOFR and BSBY rates.</p> <p>Currently BSBY is trading at a lower rate that SOFR, and Jay says he’s not sure what’s driving that.</p> <p>For Analyst Jeff Lee in defeasance, there’s a lot of end-of-month activity as his team prepares for the fourth quarter. Next week Jeff will have August data for his industry sector.</p> <p>The debt ceiling is still looming, notes Analyst Jason Kelley. Experts are looking to see its effect on the overall market if terms aren’t agreed upon.</p>