Benchmark Treasury notes were lifted higher on Wednesday as the Dow Jones Industrial Average gained over 1,000 points in its largest single-day gain ever.
The S&P 500, which officially entered into a bear market following Monday’s session was up almost 5 percent, while the Nasdaq Composite gained over 350 points or almost 6 percent.
The benchmark 10-year yield ticked higher to 2.81, while the 30-year yield rose to 3.068. Meanwhile, short-term yields like the five-year went up to 2.652 and the two-year yield rose to 2.623.
It’s been the new normal in the markets as of late with the major indexes oscillating wildly, and it was more of the same prior to the rally—the Dow went up almost 300 and lost its gains prior to surging past 1,000 points to end the trading session. The markets were coming off a 653-point drubbing of the Dow on Monday with a combination of government shutdown fears and global growth concerns roiling stocks.
“Government shutdown starts with no end game strategy by either side,” said L. Thomas Block, Washington policy strategist at Fundstrat Global Advisors. “The President … remains convinced that fighting for HIS wall is worth a government shutdown and his base loves the confrontation.”
Furthermore, markets were shaken when Treasury Secretary Steven Mnuchin made calls to CEOs of major U.S. banks last weekend to confirm that “ample liquidity is available for lending to consumer and business markets.”