US stocks stretch to fresh highs as yield edge lower following T-bond auction

I would say that so far, markets are on their way to pricing in a return of Trump 1.0. What we don’t know is if we’ll get something closer to the Trump 2.0 who talked about 60% China tariffs and mass deportations.

Time will tell and we will be trading the headlines.

For now, equities love the idea of lower corporate taxes, even if it means higher borrowing rates. The S&P 500 is at a session high, up 147 points to 2930 or 2.6% while the Russell 2000 is up a remarkable 5.5%.

The latest leg came after a 30-year auction that stopped through to 2.2 bps and helped to ratchet a 24 bps rise down to 16 bps. A big question is how high rates go from here and how badly that hurts rate-sensitive sectors like housing and autos.

This article was written by Adam Button at www.forexlive.com.