- A new set of mild inflation statistics increased the possibility of interest rate cuts while highlighting the potential of an economic slump, causing bonds to rise and stocks to stall.
- Germany’s 10-Yr yield dropped below 2% for the first time in nine months after a report showed PPI fell more than expected in November. Meanwhile, British 10-Yr borrowing costs retreated as much as 11 basis points as slower-than-expected inflation boosted the case for BoE rate cuts next year. Treasury yields slid four basis points to 3.9%.
- UK interest rate swaps show greater than 50% chance of a BoE rate cut by March 2024 following lower than expected CPI data. UK interest rate swaps show first BoE rate cut fully priced in by May 2024.
- Futures on the US Nasdaq 100 fell 0.3% following the index's third straight day of record high-setting activity.
- Germany's BDI Association: German economy is heading for recession.
