Stimulus Hopes Still Spring Eternal

Despite the passing of yesterday’s deadline, Speaker Pelosi and Treasury Secretary Mnuchin are still reportedly negotiating over the details of another fiscal stimulus package. Market sentiment seems to suggest that investors perceive a likelihood that ongoing discussions will produce a deal. White House Chief of Staff Mark Meadows told reporters this morning that the goal is to get some kind of deal within 48 hours.

Today’s only data-point has been the announcement by the Mortgage Bankers Association that, for the week ending October 16th, Mortgage Applications fell 0.6% following a dip of 0.7% the week before. Later this afternoon, the Federal Reserve will release its Beige Book, a regional compilation of conditions around the country.

Treasury bond prices are a little lower this morning with the Ten-Year’s yield edging up to 82 basis points while the Long Bond’s yield has drifted up to 1.64%. The Two-Year is little changed at around 15 basis points. Crude oil is off less-than-a-dollar but still over $41 while gold’s $14 rally has taken its price to $1,921. Equity indices look to open pretty flat.