The sell-off in tech stocks continues to make news this morning as Treasury prices rise. Today’s early 3/8 point rally in the Ten-Year has pushed that issue’s yield down to around 67 basis points. The Treasury is selling $249B in securities today including $50B of Three-Year notes. That’s a lot.
Already today, the National Federation of Independent Businesses announced that its Small Business Optimism Index unexpectedly leaped to 100.2 last month from 98.8 versus the survey prediction of just a modest move to 99. This afternoon, the Federal Reserve is expected to tell us that Consumer Credit rose by $13B in July which might be encouraging in terms of recovery news as the growth in the pace at which consumers have been borrowing has slowed dramatically during the pandemic.
In the meantime, Treasury prices are up all along the curve with the Long Bond currently yielding around 1.41% after this morning’s price gain of almost 1 1/2 points. Gold has slipped about $15 to $1,918 and crude oil is off more than $2 to $37.50. Equities look to open in the red with many big-name tech stocks falling the most. Congressional wrangling over the size and shape of the next stimulus relief package is set to continue this week.