There will be no updates for the next 2 weeks. Happy Holidays everyone – and thanks for reading!
- BoJ kept policy unchanged as expected
- German GfK Consumer Confidence ticked higher to 7.6 vs 7.4 exp and prev
- EU Consumer Confidence
- US 3Q GDP was revised higher to 4.1% vs 3.6% exp and prev. Personal Consumption was a large driver, rising to 2.0% vs 1.4% exp and prev.
- Canada CPI rose to 0.9% YoY vs 1.0% exp and 0.7% prev. The Core measure ticked lower to 1.1% vs 1.3% exp and 1.2% prev
- Canada Retail Sales ex Autos rose 0.4% MoM vs 0.0% exp and prev
- China equities were down 2%, 9th consecutive close lower, down 7% over that time on continued liquidity concerns. Repo rate opened at 4.98% after closing at 7.1% post yesterdays liquidity injections but traded up to close to 10%. Post close Fri, PBOC did another liquidity injection. h/t Nam
- according to a Bloomberg survey, economists expect the Fed will taper by $10B increments over the next 7 meetings before ending the program in Dec
- The Fed purchased ~90% of new, eligible MBS issuance in Nov and even w/tapering will be a massive player going forward. This is one of the big reasons the Fed was almost forced into tapering (they are running out of stuff to buy). Asset Portfolio passes 4T mark. WSJ
- the BOJ is on its way to becoming the largest owner of JGBs; right now insurers own ~19.9% of the total vs. 17.4% for the BOJ – Nikkei
- Mon: CanadaGDP, US Personal Income, U Michigan Confidence,
- Tue: US Durable Goods, New Home Sales
- Wed: X-mas, Japan PMI
- Thu: US Jobless Claims, Japan Unemplo0yment CPI