The 2-year Treasury yield surged yesterday (Dec. 29), rising to 1.09%–the highest since April 2010, based on daily data published by Treasury.gov. The increase in this key rate—considered to be the most-sensitive spot on the yield curve for rate expectations—suggests that the market’s confidence is rising that the Fed will continue to tighten monetary policy in 2016.
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● US consumer confidence rises more than expected in Dec | USA Today
● US home prices still rising at 5%-plus annual pace in Oct | NY Times
● US merchandise trade deficit shrinks in Nov | Bloomberg
● Johnson Redbook: US retail sales index up 2.1% in 3rd week of Dec | MNI
● State Street: global investor confidence rises in Dec | P&I
● Eurozone money supply growth slows in Nov; private lending improves | RTT
● Global growth will be disappointing in 2016 says IMF’s Lagarde | Reuters