Is the US stock market inspired by expectations that the Fed will delay interest rate hikes? Or perhaps the crowd anticipates that economic growth will chug along at a healthy rate, despite last week’s news that employment suffered a sharp slowdown in May. Maybe both factors are in play. Whatever the source of the renewed optimism that’s driving equities higher, the revival of animal spirits in the stock market conflicts with the ongoing and arguably firmer appetite for the risk-off trade in Treasuries.
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