Action Economics: Credit concerns continued to dominate trading overnight, though volumes were thin. Risk aversion remained atop investors' agenda, sustaining a bid in government bonds as Asian and European equities extended declines. News that Goldman Sachs downgraded Citigroup to sell heightened jitters in stocks, while forecasts of a weak holiday shopping season added to market fears of a U.S. recession down the road. Curve steepening trades boosted shorter dated notes. There wasn't anything new from the G20 over the weekend to impact the markets. Today's U.S. calendar is light with only the November NAHB homebuilder survey. We look for a small rebound. The Fed's Stern, a hawk, spoke over the weekend and said the economy remains resilient and the impact from housing shouldn't be exaggerated.
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