Daily Market Color

Rates Stabilize Following BoJ Announcement

Rates little changed following BoJ decision.  Rates held in a tighter range today following the BoJ induced volatility. US Treasuries were down slightly across the curve, with the 2-year yield declining by 4bps to 4.21% and the 10-year declining 2bps to 3.66%.  Markets are now preparing for PCE data along with a slew of other data releases later this week.  Equities rallied, with the S&P 500 up ~1.50% to 3,878 and the NASDAQ up ~1.50% to 10,709 following better than expected earnings releases.

Tomorrow’s data releases offer inflation insights.  Tomorrow, quarterly data will be released for Core PCE, as well as quarterly GDP growth.  Markets expect Core PCE for Q3 2022 to be 4.6%, in-line with last quarter’s print.  Quarterly GDP growth is similarly expected to be the same as Q2, at 2.9%.  These releases come ahead of Friday’s MoM PCE inflation and New Home Sales data.

Day Ahead.  Tomorrow’s highlights are 3Q Core PCE and GDP data.  Also keep an eye out for Initial Jobless Claims for the week ended December 17th.   

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