Issue 39 – Halloween, All Saint’s Day, All Soul’s Day and St-Hubert’s Feast Day Hit a Grand Slam:

Stocks kicked off an eventful Halloween week with big gains across the board from day1, all 11 sectors of the S&P 500 having closed in positive territory. The rally took the benchmark above its 200-day moving average. What was particularly interesting, however, was that the US Treasury announced its estimated marketable borrowing needs for Q4 ($776 billion) and Q1 ($816 billion), following 1.01 trillion in Q3 while the US Fed delivered a hawkish pause: yet the bond market did not flinch: it bounced, suggesting a Treasury yield around 5.00% is high enough to attract private buyers even though fiscal policy is out of control and the Treasury lost China and the Fed as big buyers.


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By Hubert Marleau

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