Daily Market Color December 31, 2020Treasury Yields Rangebound on Last Trading Day of 2020 Rates fall on last trading day of the year Markets ended the year on a quiet note with major equity indices falling slightly – the S&P 500 and DJIA declined less than 0.1%. Treasury yields and swap rates were rangebound – the 10-year UST yield closed less than a bp lower at 0.91%. Initial jobless claims fell for a second consecutive week Claims declined to 787,000 last week from 806,000 the week prior. Economists expect claims to continue trending downward into the new year as funds from the virus relief bill begin to be distributed. US dollar has the worst year since 2017 The currency hit a three-year high in March of 102.99 but has since been on a downward trend, ending the year down 6.77% and 12.65% from its March high. Reminder: markets will be closed tomorrow in observance of New Year’s Day. We wish everyone a happy and healthy start to the year!