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16 Euro Nations Provide Help
05/10/2010
The 16 euro nations agreed to offer as much as 750B euros ($962B), including IMF backing, to countries facing instability; the ECB will buy government and private debt; debt from Greece, Spain, Italy, Ireland, Portugal, as well as others, has rallied. Stocks and commodities are sharply higher, bonds are lower. The Treasury will auction $38B in 3yr notes tomorrow, $24B in 10yr notes on Wednesday, and $16B in 30yr bonds on Thursday. Right now, the futures market is pricing in a 67% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.56% (3.46% on Friday) and the 2-10 yield spread is at 266bps, steepening 3bps since Friday morning.
