3rd January 2025

  • Treasuries Start 2025 in Familiar Bind as Oil Rally Lifts Yields

Signs of economic resilience abound, eroding demand for bonds

Next week’s Treasury auction schedule shifts to Monday start

https://blinks.bloomberg.com/news/stories/SPHARNDWLU68

  • Reserves at Fed Sink Below $3 Trillion to the Lowest Since 2020

The $326 billion drop in week to Jan. 1 was biggest since 2022

Officials have been shrinking balance sheet since June 2022

https://blinks.bloomberg.com/news/stories/SL5DPRT0AFB4

  • US Mortgage Rates Approach 7% in Ominous Sign for Housing Market

MBA’s measure of rate on 30-year mortgage rose to 6.97%

Home-purchase applications fell almost 7% during holiday week

https://blinks.bloomberg.com/news/stories/SPGWR9T0G1KW

  • Euro Falls to Lowest Since 2022, Pound Weakens on Growth Woes

Weak growth, rates outlook have been weighing on the euro

Pound also underperforms as investors worry about UK activity

https://blinks.bloomberg.com/news/stories/SPGTXNDWRGG0

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