Bond yields hit their highest level since August this week, as investors bet a Democratic blue wave could bring big spending and more debt.
"I think the reality is, even though there's a pretty big knee jerk reaction here, this just delays it," said Jon Hill, senior fixed income strategist at BMP. "There is another program coming. It's just now clear it will not occur until after the election. But 10s only fell to 0.72 or 0.73, which not too long ago was the top of the range. Even after this news, the 10-year yields are higher than where they were yesterday morning.
"We've got trillions on the table," said Greg Faranello, head of U.S. rates at AmeriVet Securities. He said he ultimately expects a roughly $1.5 trillion or more fiscal stimulus package even with a setback, and then another big package from Biden, if he wins. Since the debate last week, Biden has been rising in polls and betting markets. He leads by 9 percentage points in"The polling is definitely skewing toward a Biden presidency with the potential for that to trickle down to Congress. Should that be the case, there would be a fair amount of spending," said Faranello. "It's likely to be sooner rather than later."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks are rising on stimulus expectations and could break out if we get one, strategists sayNew for subscribers: Stocks are rising on stimulus expectations and could break out if we get one, strategists say Check out CNBCPro today.
Read more »
Trump says he's calling off stimulus negotiations with Democrats 'until after the election'Trump told his administration's negotiators to stop talks with Democrats, even after Pelosi and Mnuchin pushed for an agreement in recent days.
Read more »
Dow Climbs 200 Points While DraftKings Slumps And Bristol Myers, BridgeBio Pharma Announce AcquisitionsThe Dow climbed 200 points today while DraftKings slumped and Bristol Myers, BridgeBio Pharma announced acquisitions
Read more »
IRS Extends Deadline After Urging 9 Million People To Get Their Stimulus ChecksPeople who don't usually file tax returns have one more chance to claim their stimulus payment.
Read more »
L.A. County won't move into a new reopening tier this week, officials sayDespite some promising metrics, Los Angeles County is not expected to move into a more permissive phase of relaxing coronavirus restrictions this week.
Read more »
Trump rejects Democrats' stimulus offer, says no deal until after the electionPresident Donald Trump put an end to months of negotiations over a COVID-19 stimulus package Tuesday, rejecting the Democrats' latest offer and saying he wanted to postpone negotiations until after the election.
Read more »