Market Updates

Weekly Economic Update: December 27, 2022

• Yields finished the week higher with the two-year Treasury note rising by 12 basis points to 4.32% while the five-year note increased by 23 basis points to 3.86%

• The housing market continues to struggle as building permits fell by 11.2% in November and with housing starts averaging 1.3% less than they did in Q3, weakness in the sector, notably for single-family homes, is expected to continue well into 2023

• The personal consumption deflator in November echoed that of the recent soft CPI report as the deflator advanced by a slim 0.1% for the month, down from 0.4% reinforcing the notion that peak inflation is behind us

• The Fed will meet for the first time next year on January 31st through February 1st where markets and economists are currently expecting the committee to keep restricting monetary policy, albeit with a smaller hike of 25 basis points as they continue to fight inflation

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