The weekly macro brief for w/c 30 December 2019 – Its year end this week and there will be some focus on the repo market and any potential stress in markets/rates. The Fed has ramped up liquidity support leading up to the year-end turn in order to avoid the funding pressures experienced in Sep. Over the next few weeks, the term repo operations will unwind.
Although a shortened week, there are still several important data releases;
FOMC Minutes from the 10-11 Dec Fed meeting
US ISM Manufacturing PMI for Dec
Global PMI’s (final version) for Dec will start to be released this week, starting with manufacturing activity in the US, UK, Europe and Australia
The Chinese NBS will release the manufacturing and non-manufacturing PMI’s for Dec
On the trade front, the US-Japan phase one deal comes into effect on 1 Jan. Negotiations on phase two will start shortly.
The US and China continue to work through the detail and draft of the phase one deal.
The USMCA has passed through the House of Reps and will now go to the Senate for approval some time over the next few weeks.
The US Treasury will settle approx. $302bn in ST bills, Notes and TIPS this week, raising approx. $32bn in new money.
More detail (including a calendar of key data releases) is provided in the briefing document – download the file here;
The weekly macro review will be posted next week covering the weeks of 23 and 30 Dec 2019.
Comments and feedback are welcome. Please email me at kim.mofardin@marscapitalpartners.net
We wish all of our valued clients a very safe, happy and prosperous New Year!
