Looking at the 10-year chart, we have had almost a ¾ move this week with a high of 13914.5 and a low of 138-23. The trade is solely focused on stimulus talks. Yesterday afternoon, Trump tweeted that all talks would stop between parties because they cannot agree on a fiscal stimulus plan and they should hold off until after the election. That sent stocks sharply lower and treasuries higher. Last night, Trump changed course and let’s try to get things done asap and he is now focused on trying to get a deal done in pieces. So, today we see another reversal where stocks are sharply and treasuries lower but off the lows currently trading at 138-27. It’s going to be a difficult trade because moves are literally being made on tweets. Tonight, we have the Vice-Presidential debate so traders should expect some volatility. I do believe we will see progress being made with many people still out of a job, needing money to pay bills, and to put food on the table for their families. But, there is so much hostility between both parties right now, one has to wonder if Pelosi would rather wait till after the election, so Trump doesn’t get credit for passing the bill. It puts many Americans on hold which is unfortunate because Washington should be working for the people not looking out for their parties.  

10-Year Note Dec ’20 Daily Chart
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Greg Perlin

Senior Market Strategist
Greg is a former Chicago Board of Trade member. He was an independent floor trader, pit broker and floor broker with Cantor Fitzgerald. Some of his clients included traders from Morgan Stanley and Lehman Brothers. He also acted in the capacity of desk manager for the morning trade desk. Greg was part of the elite Lind Plus Division for 10 years before joining RJO Futures in 2011.
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