S&P500 +37 to 4928, smashing through 4900 after favorable news from the Treasury -
briefing -
Market Briefing: Stocks and bonds like Treasury Department's Q1 borrowing estimate
Stocks popped to new session highs as Treasury yields moved to new session lows a short time ago, responding favorably to the Treasury Department's first quarter borrowing estimate.
Specifically, the Treasury Department anticipates borrowing $760 billion in privately-held net marketable debt, which is $55 billion lower than announced in October 2023. For the second quarter, the Treasury Department is estimating a $202 billion borrowing need.
Market participants -- and perhaps even some bond vigilantes -- are liking the lower-than-previously projected first quarter estimate. On Wednesday, the refunding announcement will carry details on where the debt issuance will occur along the curve (i.e., short end, belly, or long end of the curve).
The 2-yr note yield touched 4.30% following today's announcement and the 10-yr note yield dropped to 4.06%. They are now at 4.31% and 4.07%, respectively. The S&P 500 (+0.6%) for its part spiked to a new all-time high of 4,918.36 and sits a hair below that level now.
