Today’s session opened with Treasuries lower than yesterday. The yield on the UST10-Year is currently at 2.379% after closing at 2.343% during the prior session.
The FOMC announced yesterday a 25 percentage points increase on the Fed Fund Target Rate to a range of 1.25% - 1.50%, a decision that was mostly anticipated and priced in by financial markets. The rate increase signals an economy in expansion and a strong labor market according to statements from exiting Fed Chair Janet Yellen.
Meanwhile, the economic calendar continued today with Initial Jobless Claims for the week ended December 9 of 225k, a decrease from its previous mark of 236k and below forecast of 236k; and Continuing Jobless Claims for the week ended December 2 of 1886k, also below a revised prior mark of 1913k and forecast for the period of 1900k. Also in today, month-over-monthRetail Sales rose during November by 0.80%, exceeding expectations of 0.30% and above its revised prior mark of 0.50%. Finally, preliminary Manufacturing PMI for December rose to 55.00, above survey of 53.90 and prior of 53.90; and preliminary Services PMI for December dropped to 52.40, below survey of 54.70 and prior 54.50.
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The FOMC announced yesterday a 25 percentage points increase on the Fed Fund Target Rate to a range of 1.25% - 1.50%, a decision that was mostly anticipated and priced in by financial markets. The rate increase signals an economy in expansion and a strong labor market according to statements from exiting Fed Chair Janet Yellen.
Meanwhile, the economic calendar continued today with Initial Jobless Claims for the week ended December 9 of 225k, a decrease from its previous mark of 236k and below forecast of 236k; and Continuing Jobless Claims for the week ended December 2 of 1886k, also below a revised prior mark of 1913k and forecast for the period of 1900k. Also in today, month-over-month Retail Sales rose during November by 0.80%, exceeding expectations of 0.30% and above its revised prior mark of 0.50%. Finally, preliminary Manufacturing PMI for December rose to 55.00, above survey of 53.90 and prior of 53.90; and preliminary Services PMI for December dropped to 52.40, below survey of 54.70 and prior 54.50.
The curve has bear-flattened with the UST 10-Year yield up 3.6 bps from prior closing.