News Summary

• “It’s going to get a lot rockier and a lot more uncertain into the future.”Read Surveillance: Morgan Stanley Sees a Year of Living DangerouslyTreasuries powered ahead with the yield on the policy-sensitive two-year notching a 10 basis point move, the 10-year rate fell to 3.9%..
• British 10-year debt led the global bond rally following data showing a slowdown in UK inflation.Traders also digested data showing US consumer confidence in December rose by the most since early 2021 on Wednesday..
• But we’re in this melt-up period and so oftentimes things can get even sillier before they really do have a pullback.”Jim Caron, portfolio solutions CIO at Morgan Stanley Investment Management, was also cautious looking ahead to the new year..
• “The market is very extended, we do see it being very overbought..