Daily Market Color

Rates Rise as Markets Await Congress’ Stimulus Decision

Treasury yields closed higher on the day as markets await stimulus decision
President Trump demanded changes to the $900 billion virus relief bill, asking officials to increase the amount of the direct stimulus checks from $600 to $2,000. Markets will most likely remain on edge until there is further clarity on how Trump’s demands will be received by Congress.  Despite the uncertainty, major equity indices snapped their three-day losing streak – the S&P 500 and DJIA rose 0.1% and 0.4%, respectively.  Treasury yields and swap rates rose across the curve – the 10-year UST yield closed 3 bps higher at 0.94%.
Initial jobless claims drop to 803,000 from 892,000 the week prior 
The figure was well below economist expectations, pulling the four-week moving average down to 818,250.
Personal income fell 1.1% in November, continuing the downward trend for the second consecutive month 
The headline figure came in weaker than the expected 0.3% decline, as a lack of government support weighed on Americans’ incomes.
November’s new home sales drop to 841,000 from 945,000 the month before 
The figure fell after five straight months of growth, disrupted by labor and land shortages. On the positive side, the level was 20.8% above last year’s level.
Reminder: markets will close early tomorrow (2pm EST) and be closed on Friday in observance of Christmas Day. 

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