Market Update - 12 Dec 2012

• Stocks rose as risk appetite gained amid signs Europe’s fiscal crisis may ease. Expecting Asia to be relatively quiet today ahead of FOMC and I see little to get excited today. S&P was up up 0.65% to 1,427.84 and Dow was up 06.0% to 13,248.44.

• Treasuries fell, pushing 10-year yields to a two-week high, as investors sought higher-yielding assets and the Federal Open Market Committee began a two-day meeting amid forecasts it will decide to buy more bonds to spur the economy.

• USDMYR yesterday towards the closing spiked up to 3.0650. The closing of short USDMYR positions have started some weeks back but I reckon as we come closer to year end more unwinding are in the market driving the pair higher. Range still 3.0300-3.0800 with nothing

• The benchmark 10-year note yield increased four basis points, or 0.04 percentage point, to 1.65 percent at 5 p.m. in New York, according to Bloomberg Bond Trader prices. It touched 1.66 percent, the highest level since Nov. 27.

• Italian bonds rose, with 10-year yields falling from the highest level in three weeks, as concern eased that Prime Minister Mario Monti’s resignation would derail the nation’s attempts to cut its debt load.

• Italy’s securities snapped their slide from yesterday before the nation sells as much as 6.5 billion euros ($8.44
  billion) of bills tomorrow and debt due in 2015 and 2026 the following day. Spanish bonds advanced after an auction of bills raised more than the maximum target set for the sale.

• Greece’s yields fell to the lowest since the nation’s debt was restructured in March as its offer to buy back sovereign debt expired. German bunds fell after investor confidence improved.