Bonds & Stocks
Treasuries extended gains after a weaker-than-estimated retail sales report reinforced the case for the Federal Reserve to cut interest rates this year. Stocks wavered as traders digested the gains of the past two of sessions. Bitcoin sank. The yield on 10-year Treasuries slid five basis points to 4.16%.
Economy
US retail sales unexpectedly stalled in December, suggesting consumers provided less firepower for the economy as the year drew to a close. Households remain frustrated over a high cost of living and worried about the job market. The value of retail purchases, unadjusted for inflation, was little changed after a 0.6% gain in November, Commerce Department data showed Tuesday.
World
China signaled greater efforts to protect national security in Hong Kong after the sentencing of Jimmy Lai renewed foreign governments’ calls for the former media mogul’s release. Beijing’s State Council on Tuesday outlined plans to strengthen security in the semi-autonomous Chinese city, naming finance and shipping among areas of focus.