Institutions & Corporations

Fixed Income Capital Markets

Fixed Income Daily Market Commentary

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This commentary, published by Janney Fixed Income Strategy, covers daily topics as well as current activity in the fixed income market. 

December 21, 2014: Trading turned choppy on Friday, with the final session of Fed liftoff week facing sharply lower volume and the start of a slow slide into the Christmas and eventually New Years Holidays. Buyers outnumbered sellers on Friday, though the margin felt relatively slim, leading to directionless and volatile price action, though we closed modestly in the green on the day. During overnight hours, Asia was better buyers of the long end, leading to modest gains that held through the open of New York trading hours. By mid-morning, however, domestic equity markets started to fade, with flows shifting out of stocks and into bonds; rates reached their best intraday point just before 1PM EST, and drifted lower into the close. On the session, ten year yields ended lower by 2 basis points to 2.21%, while two year yields closed the day lower by 3 basis points to 0.95%. The full tally for Fed week is a modest 8 basis point increase in ten year yields and a 7 basis point increase in two year yields—hardly the bond market carnage that some of the unfaithful pundits feared.


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