Green Lights on Liquidity, Froth on Sentiment: Staying Cautiously Bullish

December 21, 2025 - Update

Well, last week inflation came in better than expected at 2.7% YoY, which is a good sign going forward. The current forecast for the December number sits at 2.6%.

Nonetheless, the 10-year Treasury yield is still hovering around 4%, so the market is still expecting inflation to stay resilient over the next few months.