Greysteel Capital Markets Update | October 2019

On October 1, the Institute for Supply Management (ISM) reported its index of national factory activity fell to 47.8 in September, its lowest level in over a decade. The 10-year Treasury yield dipped to 1.65% on the news. On September 18, the Federal Reserve announced that it will lower its overnight lending rate by 25 basis points to a range of 1.75% to 2.00%, as trade tensions between China and the United States continue to strain business conditions. The Fed meets again at the end of October and any further rate cut could depend on the U.S. September employment report, set for release on Friday.