The Daily Update - A Christmas Tree A Christmas Tree Alternative

Here we are with the last Daily note of 2018.

The Fed as widely expected raised rates again last night taking the lower funds rate to 2.25% from 2%. Although Fed Chair Powell remained upbeat regarding the economic outlook, the Fed’s so called ‘Dot Plot’ of future hikes was revised down so that each of the expected year end rates in the 3 year forecast came down  by one full hike. They also changed the wording in their post meeting statement by adding the word ‘some’ to now read ‘Some further gradual increases in the target range for the Federal funds rate’.

The US Treasury market yield curve bull flattened with short rates stable and 10 years dropping 6bp and the 30 year yield falling 9bp. A much appreciated year end present for us bond investors, fingers crossed these gains remain in place for the remaining 7 U.S. trading days of this year.

In other news the Senate passed a stop-gap budget last night to head off the partial government shutdown at the coming weekend.

We finish with the usual or indeed unusual Stratton Street seasonal poem, this year its adapted from A Christmas Tree, A Christmas Tree written by David Keig.

Oh Brexit deal! Oh Brexit deal!

With tears of joy and needled memories, Of politicians wants and aspirations,

Wrapped present-like for Teresa May.

Oh Brexit deal! Oh Brexit deal!

I glimpse a past of no EU sanity, The deal that then grew for one and all,

Not forward fast but haltingly.

Oh Brexit deal! Oh Brexit deal!

A time for being with family and friends at a bar, A time that’s gone on forever

Yet lives for always deep in me.

Oh Brexit Deal! Oh Brexit deal!

When that March night comes whole hauntingly, One lingered look and then I see,

No Brexit deal where it should be.

Oh Brexit deal! Oh Brexit deal!,

With feelings now felt longingly, No corner in the parliamentary house to see,

The magic of would be ignoring Farage and Johnson; instead enjoying a Christmas tree.

Our thanks go to all of our readers and clients for their continued support. Season’s greetings from all of the team at Stratton Street, have a great holiday.

Although the desk is maintained throughout the holidays we will be back with our first daily of 2019 on the 7th January.

In the words of the immortal Noddy Holder of Slade, ‘So here it is Merry Christmas, Everybody’s having fun, Look to the future now, It’s only just begun’. Enjoy, have a great time, see you next year.

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