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DC Lite #494
"The sharp decline in funding spreads over the past week suggests professional investors sold into recent strength"
Daily Chartbook
December 08, 2025
Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.
1. Survey of Consumer Expectations. "The share of households who think their financial situation will be better in a year matched a new 2-year low in Nov. Fewer than 26.5% of households expect their situation to improve. We were at this level in May 2025 after 'Liberation Day.'"
2. Yield curve. "The Treasury curve continues to steepen, with the spread between the 3-month and 10-year yields at its widest level, 58 bps, since Oct. 2022."
3. Funding spreads. The sharp decline in funding spreads over the past week suggests professional investors sold into recent strength.
4. XMOMO. "SG Cross Asset Momentum Signal (XMOMO) is positive for the 2nd week by jumping to 100%, i.e. 11 out of 11 key cross-asset signals are now positive, first time since July’23 ... XMOMO typically stays positive over coming weeks at these levels, with S&P 500 up >70% of the time over 4–6 weeks. A 100% reading is rare (<4% historically) and usually centres around shift in Fed sentiment."
5. Tech vs. GDP. "All major innovations of the past 150 years – steam, electricity and the digital revolution – were enough to keep U.S. growth at its 2% trend, not break it ... Something more is needed, and AI could deliver it."
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