Treasuries sell off as Joe Biden eyes $2 trillion stimulus package, while US stocks set to edge higher
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rose 0.93%.Investors have had a calmer week after the frenzied buying at the start of the year. Last week, investors piled into stocks that are more exposed to the economic cycle such as financials and industrials, in the hope that a Biden presidency and more stimulus will fuel growth.
Biden is expected to lay out his plans later in the day in Wilmington, Delaware. His advisors have told allies the total package could come to around $2 trillion, two people briefed on the planstold CNN.David Madden, market analyst at CMC Markets, said: "Essentially, the markets have been in a holding pattern for the past three days as dealers have been waiting to hear from Mr Biden.
"To an extent, a large amount of positive news has been factored into stocks and commodities."Bond yields have marched higher, while prices have fallen in recent weeks. Investors expect the government to issue another wave of bonds to fund extra stimulus, pushing up supply. headtopics.com
Markets are also betting stimulus will help growth and inflation. That pushes down bond prices and pushes up yields as low-yielding bonds look less attractive, especially compared to stocks. Read more: Business Insider »
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