Rates Remain Steady Ahead of Holiday

Rates little changed on holiday-shortened day. U.S. Treasury yields rose ~3 bps this morning, only to reverse course after a strong 5-year auction, ending roughly unchanged on the day. The 10-year yield closed at ~4.59%, while the 2-year ended at ~4.33%. Equities extended yesterday’s rally, powered by another day of gains across large technology companies. The S&P 500 and NASDAQ rose 1.10% and 1.35%, respectively.

Holiday spending to break records. Consumer holiday spending is a closely watched measure of economic strength and impacts various economic data points. Per a National Retail Federation (NRF) survey released on 12/16, 157.2 million consumers expected to shop last Saturday in advance of the holidays, up from 141.9 million last year. Budgets are also bigger – the NRF expects a record setting average consumer budget of $902 during the season, ~3% higher than last year. Don’t be surprised if you get a new sweater – 54% of surveyed consumers expect to receive clothing or accessories this year.

No matter how you plan to celebrate, all of us at Derivative Path hope you have a wonderful holiday!