Spending Bill Rallies the Rally

The late afternoon announcement of an emergency spending bill aimed at combating the spread of the coronavirus has turbocharged an already big equity rally. The DJIA rose by 1,173 points today while bond prices have had to give a little back. The move to 1.03% on the Treasury’s Ten-Year needed about about a 3/8 point sell-off to get there. Most of today had been spent at a yield less than 1%. On the monetary front, G7 nations have pledged to provide support and stimulus along with the Bank of England and the European Central Bank. This on the heels of the FOMC’s emergency rate cut yesterday.