Rate explorer

Explains how reference rates reach loans, mortgages, deposits and bank earnings.

Explains why deposit pricing can respond to market rates with a delay.

An internal funding price helps compare lending, deposit gathering and transaction businesses. The result depends on cash-flow timing, behavioral assumptions and how liquidity costs and benefits are assigned.

The Nasdaq gained 0.45% over the five sessions through October 2, while the S&P 500 fell 0.27%, the Dow declined 1.26% and the Russell 2000 slipped 0.16%. The 2-year Treasury yield rose 2 basis points and the 10-year yield increased 11 basis points from the prior Friday.

Dallas Fed President Lorie Logan said she estimates the federal-funds target may need to rise at least another 50 basis points after September's 25-basis-point increase. She cited resilient growth, a balanced labor market and inflation trending toward the mid-2% range, above the Fed's 2% goal.

After the 10-year Treasury yield briefly reached 5.34%, yields turned lower and major U.S. indexes closed modestly higher on October 1. The Dow rose 0.04%, the S&P 500 0.20% and the Nasdaq Composite 0.04%.