Treasury ETFs were higher Monday as stocks and bond yields lost ground. [Deficit Gridlock, Europe Woes Push Treasury ETFs Higher]
“A bigger issue for the economy and markets, however, is the ability of Congress to achieve anything in the wake of this process,” Kelly said. “Importantly, a number of temporary tax breaks, including a 2% payroll tax cut, are due to expire at the end of this year. If they do, and discretionary spending is held to the caps agreed to in August, there is a significant risk that the economy will suffer too much ‘fiscal drag’ entering a new year, undercutting some small signs of momentum which have emerged in recent weeks.”
SPDR Dow Jones Industrial Average ETF
