Societe Generale Research discusses the market conditions into tomorrow's FOMC December policy meeting.
"The FOMC meeting will continue to loom large, and there's sure to be speculation about how dovish they can sound while still hiking, or that they'll bow to market pressure (and hope we don't conclude it was political pressure that did the trick). we can't see how bond bears get any joy from that, and so we can't see how yen bulls suffer, even if, as has been the case for ages, the extent of yen rallies on risk sell-offs is miserably small," SocGen notes.
"The question to ponder is what to make of central bank sales of Treasuries in the TIC data, with Chinese sales making the most headlines, They’re obviously selling into willing short-coverers, so far.
The Brexit shambles goes on, the price of oil is tumbling (again) and the FOMC isn't til tomorrow. Lower bond yields, frightened equities, and a stronger yen probably sum the day up," SocGen adds.