Reply To: Traders Market Weekly: Inflation and Bank Earnings


The trade deficit narrowed to $61.5 billion in November ( consensus -$76.4 billion) from an upwardly revised $77.8 billion (from -$78.2 billion) in October. That is the smallest trade deficit since September 2020 and it was the result of exports being $5.1 billion les than October exports and imports being $21.5 billion less than October imports.

The key takeaway from the report is that the weakness in exports and imports speaks to weakening global demand, yet the sharp drop in imports speaks to weakening demand in the U.S. economy following prior inventory building.

Following the 8:30 a.m. data releases, Treasury yields and the U.S. Dollar Index shot higher. The 2-yr note yield is up seven basis points to 4.44% and the 10-yr note yield is up three basis points to 3.74%. The U.S. Dollar Index is up 0.6% to 104.85.