Treasury Secretary Janet Yellen appeared on some Sunday talk shows yesterday and expressed her belief that our economy can return to full employment in 2022 if the covid-relief plan currently under consideration is implemented. Her remarks appear to have sparked a global rally in equities while inducing a mild sell-off in Treasury bonds.
The Long Bond’s quarter-point drop in price has pushed its yield to the threshold of 2% while the Two-Year is steady at 10 basis points. With the Ten-Year’s yield moving up to around 1.18%, the yield curve is becoming even steeper. Crude oil is up about a half-dollar to $57.44 while gold’s $12 rally has taken that price to $1,826. DJIA futures are up triple digits. There are no economic data announcements scheduled for today.