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Stocks Remain Low
08/24/2010
Stocks are lower for the fourth consecutive day in early trading on more fears that the global economy is slowing. The yen is at a 15-year high against the dollar. Existing Home Sales are expected to show a large drop when reported later in the morning. The Treasury is scheduled to auction $37B in 2yr notes today, $36B in 5yr notes tomorrow, and $29B in 7yr notes on Thursday. Right now, the futures market is pricing in a 94% chance that the Fed keeps rates between 0% and 0.25% through December 14th, 2010. Currently, the Ten Year yield is at 2.536% (2.63% yesterday) and the 2-10 yield spread is at 205bps, flattening 8bps since yesterday morning.
