July 8. Stocks roar higher
July 8. Stocks roared higher yesterday and near eurodollar contract also rallied, though longer treasury rates edged up as the curve steepened. 2/10 spread moved to 235 from 232. New low in EDU10/EDZ10 at only 8 bps.
–Washington Post has an article today saying the Fed may consider taking steps to revive the economy if conditions worsen, as Congress is “tied in political knots”.
–Wall Street Journal has a headline mentioning new highs in coffee, but all grains had a strong rally yesterday and appear ready to break out to the upside. The market trades as if we are on the verge of being flooded with (more) near term liquidity, which is finding its way into stocks and foodstuffs.
–Treasury announces 3, 10, 30 year auction sizes for next week.
