Markets Quietly Head into 2022

Markets end in a whimper In a year that saw record highs in the equity markets, and volatile swings in interest rates, the last day of 2021 ended quietly. In the months leading up to the end of the year we have seen a resurgence in COVID cases, central banks starting to tighten monetary policy, and inflationary pressures not seen in decades. These issues will be top of mind for investors when markets open to 2022 on Monday, but were little cause of concern on the last day of 2021. The S&P is on pace to close the year up over 27.0%, the best of the three major equity indices. Swap rates and yields were essentially flat on the day with the 10-year U.S. Treasury yield closing the year at 1.51%, up 60 bps from where it started the year, but down from its 2021 high of 1.74%.

Happy New Year!