Market yields once again had a tumultuous week, with the five-year Treasury traversing a sixteen bps range before ending the week fractionally lower. The week's FOMC meeting had only a marginal impact on markets as the decision to leave Fed funds rates unchanged was widely expected. The Committee was unanimous in its decision to hold rates constant, with the bar to additional rate movements seemingly very high.
Bond yields spiked on Thursday as President Trump announced that a trade deal had been reached with China. This spike proved fleeting as yields dropped on Friday as details of the "phase one deal" were announced. The morning's economic data was also sub-par, as November's retail sales rose much less than expected. The small November gains raised alarm bells for the ongoing holiday shopping season, but may also reflect a later start to the season this year.