Bonds Fade as Stimulus Hopes Rise. Again.

Discussions that took place over the weekend between Speaker Pelosi and Treasury Secretary Mnuchin have, once again, buoyed investors hopes that another round of fiscal stimulus may soon be agreed upon. Speaker Pelosi has set a deadline of Tuesday for an agreement to be reached. That, along with positive economic news out of China, has equity indices pointing to a strong opening while an early sell-off in the Treasury market has pushed yields slightly higher.

This morning’s quarter-point dip in the Ten-Year has pushed its yield up to around 77 basis points while the Long Bond’s three-quarter-point slide has boosted its yield to around 1.56%. The Two-Year is little changed at 15 basis points. Crude oil is little changed at just under $41 while gold’s $17 rally has pushed its price to $1,916. A little later, the National Association of Home Builders is expected to announce that its Housing Market Index was unchanged in October.