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Market Brief – Thursday 10/8/20

Stocks rallied in overnight trading on stimulus optimism after President Trump signaled negotiations are back on, even though an outcome is very uncertain. Treasury yields fell in overnight trading after being slammed higher this past week after consumer credit contracted last month by -7.22 billion missing expectations of a +14.00 billion print.

Initial jobless claims were higher-than-expected with +840k Americans filing new claims last week. Continuing claims fell to 10.979 million as unemployed workers exhaust their state benefits. Total unemployment claims, including Pandemic Unemployment Assistance benefits, were 25.5 million last week.

Today’s $23 billion 30-year Treasury Bond auction was met with strong demand as foreign bidders took 62.0% of the auction and domestic bidders took 15.0% of the auction, leaving securities dealers with 23.0% of the auction or $5.291 billion. Treasury yields rose following the auction.

Stocks closed higher on stimulus optimism and Treasury yields closed lower on the same news today.