U.S. stocks are sharply higher this morning on what I would consider a relief rally on what seems to be “final” agreement on the Greek debt crisis. In addition, this morning’s report that GDP for Q3 grew at an estimated rate of 2.5% is adding to the stock market euphoria.
Even though the economy is reportedly growing job growth continues to struggle as noted by last weeks’ jobless claims for the week of 402,000, stubbornly remaining above the 400,000 level.
Treasuries gave some ground yesterday, and are selling off again this morning as investors move away from “flight to safety” trade. The yield on the 10 year note is now above 2.30%. Later today the U.S. Treasury will be auctioning $29 billion in 7-year notes and the Fed is scheduled to purchase $2.25 to $2.75 billion in 25- to 30-year Treasuries.
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