Proceleusmatic
pros-uh-loos-MAT-ik
Inciting, exhorting, or inspiring.
From Late Latin proceleusmaticus, from Greek
prokeleusmatikos (calling for incitement), from keleuein (to rouse to action).
One of the derivatives of keleúein, the agent noun
keleustḗs, means “coxswain, one who beats time for the rowers,” referring
specifically to the very quick rhythm to incite rowers charging into battle to
ram enemy ships.
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TIP OF THE WEEK
A proceleusmatic prospicient House of Representatives
passed a Continuing Resolution (CR) to fund the federal government, including
SBA, through March 11, 2022 by a vote of 272-162.
This new CR maintains current funding levels and policies
for SBA which are set to expire under the current CR on February 18.
Currently, the exact timing of Senate consideration is
unclear but all indications are that the Senate will pass this latest CR and
avoid a shutdown. President Biden is also expected to sign this CR.
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Indices:
PRIME RATE= 3.25%
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SBA 504 Loan Debenture Rate for February For 20 year
debentures, the debenture rate is only 2.22% but note rate is 2.259% and the
effective yield is 3.454%.
For 25 year debentures, the debenture rate is only 2.42%
but note rate is 2.4526% and the effective yield is 3.598%.
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AHEAD OF THE YIELD CURVE
Rates are going up, rates are going up is the proceleusmatic prognostication proliferating.
The US government’s deficit however is going down.
The federal government ran a budget surplus of $119
billion in January compared with a deficit of $163 billion in the same month
last year, the Treasury Department reported last week.
Spending in January was $346 billion while receipts
totaled $465 billion. For the fiscal
year to date, the deficit was $259 billion compared to $736 billion last year.
The deficit looks relatively tame during the first four
months of the fiscal year mainly because last year the government had kept open
the spending floodgates in 2021 to battle the effects of the coronavirus
pandemic on the economy.
So what will the Federal Reserve do at their next meeting
on monetary policy?
Eurodollar futures settle at a three- month lending rate
that has averaged about 22 basis points more than the Fed's target over the
past 10 plus years.
Here is a summary of what the market expects for
Eurodollar futures based upon the pit-traded prices at the Chicago Mercantile
Exchange:
DEC22- 1.92
DEC23- 2.275
DEC24- 2.13
DEC25- 2.14
DEC26- 2.145
What does all this mean?
I don’t know.
Keep your eyes and ears open for the Minutes from the
Federal Reserve’s last meeting on monetary policy that will be released
February 16th.
The December 2022 implied rate is now at 1.92% up from
1.18% a month ago and up from only 0.17% in October.
At last week’s auction of 30 year treasury bonds the high
yield was 2.34%, up 26.5 basis points from last month's auction rate and the
highest awarded for the bond since May of last year.
The Federal Reserve’s next meeting on monetary policy is
March 15 and 16.
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OFF BASE
Where a number of individuals have been accustomed for
centuries to perform exactly the same work at the same time, it is evident that
they labored together to the rhythm of some familiar melody, the time of which
was adapted to suit the particular requirements of the task in which they were
engaged.
The ancient Phoenician builders of the Temple at
Jerusalem, and the skilled stone-masons who were employed by the Kings of Egypt
to construct the great pyramids sang songs so as to secure concerted effort.
Otherwise they might never have been able to place their huge monoliths in
position at all.
Proceleusmatic promulgations can become a profligate
tyranny of rhythm.
It is important to sometimes take a break from that and a
three day weekend approaches!
The Federal Reserve has proscribed banks from being
opened on the following days:
Washington's Birthday February 21
Memorial Day May 30
Juneteenth
June 19
Independence Day July 4
Labor Day September 5
Columbus Day October 10
Veterans Day November 11
Thanksgiving Day November 24
Christmas Day December 25
