Credit Bubble Bulletin
by Doug Noland
Saturday, December 18, 2021
My edited easy to read version follows
Ye Editor
For the Week Ending December 17, 2021:
STOCKS:
S&P500 down 1.9% (up 23.0% y-t-d)
Dow Industrials down 1.7% (up 15.5%)
Banks down 2.9% (up 32.3%)
Transports down 3.5% (up 26.6%)
Utilities down 1.1% (up 11.5%)
S&P 400 Midcaps down 1.9% (up 18.3%)
Small cap Russell 2000 down 1.7% (up 10.1%)
Nasdaq100 down 3.2% (up 22.6%)
Semiconductors down 3.9% (up 34.5%)
Biotechs up 6.0% (down 2.9%).
With gold bullion up $15,
the HUI gold index was up 2.3%
(down 17.4%)
U.K.'s FTSE down 0.3% (up 12.5% y-t-d)
Japan's Nikkei up 0.4% (up 4.0% y-t-d)
France's CAC40 down 0.9% (up 24.8%)
German DAX down 0.6% (up 13.2%)
Spain's IBEX 35 down 0.6% (up 2.9%)
Italy's FTSE MIB down 0.4% (up 19.7%)
Brazil's Bovespa down 0.5% (down 9.9%)
Mexico's Bolsa up 2.3% (up 18.9%)
South Korea's Kospi up 0.2% (up 5.0%)
India's Sensex down 3.0% (up 19.4%)
China's Shanghai down 0.9% (up 4.6%).
Turkey's Istanbul National 100 index up 2.4%
(up 41.2%)
Russia's MICEX down 1.0% (up 13.2%).
US BONDS:
Three-month Treasury bill rates
ended the week at 0.03%.
Two-year government yields
declined two bps to 0.64% (up 52bps y-t-d).
Five-year T-note yields
dropped eight bps to 1.18% (up 81bps)
Ten-year Treasury yields
fell eight bps to 1.40% (up 49bps)
Long bond yields
dropped seven bps to 1.81% (up 16bps).
Benchmark Fannie Mae MBS yields
declined four bps to 2.03% (up 69bps).
Federal Reserve Credit last week
jumped $53.4bn to a record $8.675 TN.
Over the past 118 weeks, Fed Credit
expanded $4.948 TN, or 133%.
US MORTGAGES:
Freddie Mac 30-year fixed mortgage rates
gained two bps to 3.12% (up 45bps y-o-y).
Fifteen-year rates fell four bps to 2.34%
(up 13bps).
Five-year hybrid ARM rates
were unchanged at 2.45% (down 34bps).
Jumbo mortgage 30-year fixed rates
down one basis point to 3.24% (up 35bps).
COMMODITIES:
Spot Gold up 0.9% to $1,798 (down 5.3%).
Silver up 0.8% to $22.37 (down 15.3%).
WTI crude down 81 cents to $70.86 (up 46%).
Gasoline down 0.7% (up 51%)
Natural Gas down 6.0% (up 45%)
Copper up 0.2% (up 22%)
Wheat down 1.3% (up 21%)
Corn up 0.6% (up 23%).
Bitcoin down $1,095, or 2.3%,
this week to $46,402 (up 60%).
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