Greysteel Capital Markets Update | January 2019
In a tumultuous last month of the year, policymakers and the U.S. economy showed conflicting signs of what to anticipate going forward into 2019. In December, the Federal Reserve raised its benchmark interest rate 25 bps and provided guidance for potentially fewer rate hikes in the new year. Stock market volatility was at a peak and December ended as one of the worst months of performance in history, with all indices down at least 8.7%. As a result of this news and mounting fears of an economic slowdown, the 10-Year Treasury yield saw a precipitous drop in excess of 30 bps, from 3.01% at start of the month down to 2.69% to end the year.