- Moody’s downgrades Ireland 5 notches from Aa2 to Baa1. Moody’s also cut the ratings of Bank of Ireland and Allied Irish Banks by 5 notches
- Congress passes $858 billion bill extending Bush-era tax cuts for 2 years. The House vote was 277-148. The bill is expected to be signed by Obama today.
- The Fed will be buying 13-17bn on Monday and 7-9bn on Tuesday +1-2bn TIPS on Tuesday. This is basically a week’s worth of buying on 2 days of a holiday shorted week.
- German IFO Index of Business Climate improved to 109.9 in Dec vs 109 expected and 109.3 previously.
- French Business Confidence Indicator improved to 103 in Dec vs 102 expected and 100 previously
- The weekly bearish reversal on treasury yields are suggesting a reversal:
Also interesting is that despite the sharp drop in yields today, USDJPY actually closed higher on the day.