Derivatives Market Color You Can Count On

You can receive our Daily Market Color straight in your in-box every morning. Click here to be added to our email list.

April 1, 2020

Rates Fall Across the Curve as White House Discusses Additional Stimulus


President Trump calls for $2T in federal infrastructure spending. President Trump stressed the importance of a significant investment in infrastructure in the next bill when he tweeted "It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country!" Despite the promise of more government spending, US Treasury yields ended mostly lower across the curve yesterday as COVID-19 cases continue to climb- most experts saying that the peak...

March 31, 2020

Rates and Equities Rise as Congress and White House Discuss Additional Stimulus


White House and Congress discuss additional stimulus package to blunt economic impact of COVID outbreak. Senate Minority Leader Chuck Schumer hinted "this is certainly not the end of our work here in Congress - rather the end of the beginning." One point of focus for both Congress and President Trump is increased aid for state governments, particularly as tax revenues plummet and spending demands ramp up. House Speaker Nancy Pelosi added that "next we'll go from emergency mitigation to grow the...

March 30, 2020

Fed Brainstorms Additional Aid Packages for Small Businesses and States


President Trump looks to the Fed for additional aid after signing a $2T stimulus package. After passing through the House on Friday, President Trump signed the $2T stimulus bill which includes tax breaks and direct payments to Americans impacted by the virus. The economic rescue legislation also asks the Fed to provide financing to businesses, states, and cities. Over the last two weeks, the Fed has created over half a dozen emergency lending programs to ensure the US financial system has enough liquidity. Fed...

March 27, 2020

House Votes in Favor of $2T Stimulus Package


Market volatility persists as coronavirus cases continue to grow in the US. Helping to try and curb economic concerns, today the House formally voted in favor of the $2T stimulus package, with President Trump’s signature expected later this evening. This fiscal stimulus supplements the Fed’s recent actions - cutting their benchmark rate to zero, creating numerous lending programs, and signaling to the markets that "when it comes to this lending, we're not going to run out of ammunition. That doesn't happen."...

March 26, 2020

Weekly US Jobless Claims Surge to 3.28 Million


Increased global measures are being taken to curb the impact of the virus. In the US, the Senate officially approved the $2T stimulus bill overnight in a unanimous vote. The bill includes loans to businesses, tax breaks, and direct payments to Americans. The House is scheduled to vote on the bill tomorrow, with President Trump insisting he would sign it immediately. This provided some relief to markets after Fed Chair Jerome Powell said that the US economy "may well be in a recession," but "the virus is going to...

March 25, 2020

Senate Agreement on $2T Stimulus Package Spurs Market Optimism


The Senate reached a deal on a stimulus package. Senators and the Trump Administration reached an agreement overnight on a $2 trillion stimulus package aimed at curbing the virus impact on the US economy. The package includes tax breaks, direct payments to Americans, an expansion of unemployment insurance, and $350 billion in aid to small businesses. The bill is currently being drafted and will be voted on later today. Lawmakers and optimistic that the bill will substantially aid those affected by the outbreak,...

March 24, 2020

US Treasury Yields Fall as Senate Fails to Pass Stimulus Package


Markets were rattled yesterday as the Senate failed to agree on a stimulus package. House Speaker Nancy Pelosi proposed a $2.5 trillion stimulus bill which includes supporting home owners and renters as well as student debt forgiveness up to $10,000. The House will not yet vote on these measures as they must be included in the Senate bill. Democrats voted against the bills proposed Sunday and Monday, voicing their disapproval that the majority of funds would be allocated towards large corporations rather than...

March 23, 2020

Senate Fails to Pass Stimulus Bill Causing Rates to Fall


Senate fails to pass stimulus package. Democrats voted against a second stimulus bill in the Senate -characterizing the bill as a "large corporate bailout " that fell short of meeting the funding needs of local governments and consumers. The urgency for further stimulus continues to grow as US states increase their containment efforts of the novel coronavirus with nationwide cases rising past 14,000 -- Delaware, Louisiana, and Ohio becoming the latest states to mandate a lockdown. The rapid spread of cases...

March 20, 2020

Treasury Yields Slip Despite 2nd Congressional Stimulus Bill


Treasury yields and swap rates continue to fall despite 2nd Congressional stimulus bill. The stimulus package would include tax rebates in $1,200 increments, $58 billion in credit to airline companies, and $208 billion in loans to other businesses impacted by the outbreak. The first signs of economic deterioration were highlighted in the labor market in yesterday’s US jobless claims release. Claims climbing to 281,000 (above estimates that had called for 220,000) the Economic Policy Institute estimating that the...

March 19, 2020

Senate Passes a $1T Fiscal Stimulus Package


Risk assets fall despite second wave of Congressional spending. The Senate voted 90-8 to pass a second bill costing up to $1T to provide relief for those affected by the coronavirus and to increase the supply of available tests. The House is in recess this week, but it is expected that President Trump will sign the bill into law early next week. Congress is already discussing a third stimulus package that could total up to $1.3T including $500 billion in direct payments to Americans and up to $50 billion in...


Ready to see how DerivativeEDGETM can work for you?

schedule a demo