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European Equites Reach 2-year High
11/09/2010
Adecco SA and Barclay’s beat earnings estimates, pushing European equities to the highest levels in two years. Commodities and the yen are up, the dollar is weaker. The Treasury will auction $24B in 10yr notes today and $16B in 30yr bonds tomorrow. With the Fed committing to buy $600B in government debt to support the economy, they are expected to be an active purchaser today. Right now, the futures market is pricing in a 92% chance that the Fed keeps rates between 0% and 0.25% through March 15th, 2011. Currently, the Ten Year yield is at 2.54% (2.54% yesterday) and the 2-10 yield spread is at 215bps, flattening 1bp since yesterday morning.
