After a 48-minute phone call, US Treasury Steven Mnuchin and House Speaker Nancy Pelosi appeared to move closer to an agreement on fresh fiscal stimulus. Yet, time is running out for passing any deal before election. Pelosi spokesman Drew Hammill said the negotiators moved “closer to being able to put pen to paper to write legislation” and left “better prepared to reach compromise on several priorities.” “Differences continue to be narrowed on health priorities, including language providing a national strategic testing and contract tracing plan” Hammill added. “But more work needs to be done to ensure that schools are the safest places in America for children to learn”.

US stocks were sluggish overnight with DOW ended down -0.35%. Risk of a deep pull back remains low for now and there could be another attempt on 29199.35/29568.57 key resistance zone. But a sustained break of 55 day EMA would extend the pattern from 29199.35 with another leg back to 26537.01 support.

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10-year yield, on the other hand, staged a strong rally and closed up 0.019 at 0.816. Solid support was give by 55 day EMA again, which solidify near term bullishness. We’d likely see the rise from 0.504 extends further towards 0.957 structural resistance. Though, no decisive break is expected there any time soon, not at until the pandemic risks are all cleared, or something drastic happens.


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