Wed, 12/16/2020 – 08:23
Looks like Goldman was right this time: one day after the bank’s chief political economist Alec Phillips flipped his stimulus position again, and said yesterday that think “it is more likely than not that Congress will pass this week a package similar to the recent $748bn bipartisan proposal, which would be close to our standing assumption of a $700bn (3.3% of GDP) package” moments ago Politico’s Jake Sherman confirmed what was already widely expected when he tweeted that negotiators “are on the brink of a $900bn coronavirus rescue package that would include a new round of direct payments, but would leave out state and local aid, and a liability shield.”
More importantly, he added that “a deal could come as early as early this morning.“
🚨BREAKING … Hill negotiators are on the brink of a $900bn coronavirus rescue package that would include a new round of direct payments, but would leave out state and local aid, and a liability shield.
A deal could come as early as early this morning.
More on POLITICO shortly
— Jake Sherman (@JakeSherman) December 16, 2020
The news immediately spike the emini, pushing it briefly above 3,700 before the gains fizzled as traders realized that much of this was already priced in.
The news also pushed 10Y yields to session highs above 0.94%.
And now we wait for details on the full stimulus package.
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