Good Tuesday Morning!
The bond market was closed yesterday for Columbus Day. With no real surprising news this past week, interest rates held steady.
The biggest potential news item for this week, and perhaps next, is the ongoing negotiation for a new stimulus package. The House Democrats are holding out for a $2.2T package while the Trump Administration has offered a plan up to $1.8T. Interestingly, the Senate Republicans had a conference call with Treasury Secretary Mnuchin and Chief of Staff Meadows on Saturday and expressed their displeasure with the Administration’s negotiations with the House Democrats. Even if Mnuchin and Pelosi can come to an agreement before the election, there is no guarantee the Senate will even vote on it let alone approve it. The outcome of these negotiations will have a bigger impact on the stock markets than on bond markets, but we could still see some movement in interest rates with whatever news comes out. Enjoy the week!