Economic and Fixed Income Insights, December 17, 2018

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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