Gary Siegel

New York service sector activity “expanded slightly” in December, according to the Federal Reserve Bank of New York's Business Leaders Survey.

Market participants will focus on reading the tea leaves of the Fed statement Wednesday.

The municipal bond market will see a week of meager issuance, as all eyes are on the Federal Open Market Committee and its upcoming meeting.

While bond market prognosticators are confident the Federal Open Market Committee will raise the fed funds rate target by 25 basis points this week, they remain less certain on the outlook for 2019.

Builders’ confidence in the market for new single-family homes fell in December as affordability issues remain.

Business activity “continued to expand, though growth was noticeably slower than in recent months,” the December Empire State Manufacturing Survey suggested.

Labor market “activity declined and momentum remained high in November,” as the Federal Reserve Bank of Kansas City Labor Market Conditions Indicators (LMCI) slid to 0.89 from 0.98 in October, the Bank said Tuesday.

Arthur Bass, managing director of fixed income financing, futures and rates at Wedbush, discusses the yield curve inversion, recession chances and the Federal Reserve. Gary Siegel hosts.

Small business optimism slipped a bit in November, but remained at historically lofty levels, as the National Federation of Independent Business' Small Business Optimism index dipped to a reading of 104.8.

Newly issued Treasury securities held in stripped form decreased about $2.210 billion in November.

The University of Michigan's preliminary December consumer sentiment index reading was 97.5, compared to the final November 97.5.

With monetary policy close to neutral levels and no signs of an overheating economy, the Federal Reserve should move cautiously, Federal Reserve Bank of Atlanta President Raphael Bostic said Thursday.

The U.S. services sector expanded at a faster pace in November as the non-manufacturing index grew to 60.7 from 60.3 in October.

Initial jobless claims slid 4,000 to 231,000 in the week ended Dec. 1, the Labor Department said Thursday.

Private-sector employment increased by 179,000 in November, on a seasonally adjusted basis, ADP estimated Thursday.

Municipal bonds were stronger with Treasuries at mid-session.

The New York economy slipped in November, with current conditions falling to its lowest level since June.

Forward guidance and quantitative easing became important tools for the Federal Reserve in the Great Recession, but received mixed reviews as to their effectiveness.

The Treasury market has functioned normally despite the Federal Reserve’s balance-sheet reduction, according to Federal Reserve Board Gov. Lael Brainard.

The overall economy grew for the 115th straight time, the Institute for Supply Management reported Monday.