Rates as of 0500 GMT
Hah! All the graphs I showed yesterday morning about the stock market went in the opposite direction Tuesday as the tech stocks came roaring back. The NYSE FANG index of 10 of the biggest tech stocks Amazon, Apple, Facebook, Tesla etc. was up a whopping 6.4 in one day
as the rotation out of growthmomentum stocks and into valuecyclical stocks reversed.
Well, it wasnt that value was down so much pretty much everything was up but growth was up a lot more than value. Many of the stocks benefitting from the WFH movement, such as Zoom and Pelaton, saw doubledigit gains.
Tesla was the standout, gaining some 20. This increased founder Elon Musks net worth by 25.1bn in one day the most any persons wealth has ever increased in a day, according to Bloomberg. Amazons Jeff Bezos lagged with only a 6bn increase, and maybe we should start up a GoFundMe account for Steve Ballmer, formerly of Microsoft, who made a paltry 2.1bn yesterday.
The rally in stocks was matched by a rally in bonds as 10yr yields fell 6.4bps to 1.53. This was the first fall in yields rise in prices in five sessions. The move wasnt driven by lower inflation expectations on the contrary, they rose slightly so it represents a significant decline in real yields.
The market was encouraged by a good auction of 58bn in 3yr notes. The Treasury will auction off 38bn in 10yr notes today and 24bn in 30yr bonds tomorrow those are the big hurdles for the bond market, as well…