The housing market posted strong results this week. On Tuesday, Bloomberg reported that housing starts rose 3.2 percent in November, pulling the annual pace up from 1,323,000 to 1,365,000, a three-month high. In other housing news, building permits unexpectedly rose 1.4 percent in November from 1,461,000 to a 1,482,000-unit pace, a more than twelve-year high. Bond yields trended higher over the past few days as the U.S. and China reached a Phase One deal, at least in principle. The benchmark ten-year UST finished four basis points higher to yield 1.88 percent. Tax-exempt yields were essentially unchanged with the ten-year MMD yielding 1.42 percent and the 30-year MMD yielding 2.04 percent.
Interest Rate Observations
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of December 17, 2019.
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