Debt Ceiling Looms

Monday, stocks in Asia and Europe ended little changed, but gained 0.4% in the U.S. on 10B shares traded. The 10-Year U.S. Treasury bond yield rose 2% to close at 3.59. Precious metals fell 1% while their miners lost twice that amount.

Tuesday, stocks gained 0.4% in Europe but closed little changed in Asia and the U.S. on 10B shares traded.

Wednesday, stocks fell 1% in Asia, closed little changed in Europe, and ended slightly lower in the U.S. on 10B shares traded. Precious metals declined about 1%.

Thursday, stocks rose slightly in Asia, ended nearly unchanged in Europe, and fell 0.5% in the U.S. on 10B shares traded. The 10-Year U.S. Treasury bond yield fell 2% to close at 3.54.

Friday, stocks lost 0.8% in Asia, gained 0.4% in Europe, and closed unchanged in the U.S. on 10B shares traded. Precious metals and their miners lost 1%. Cryptocurrencies declined about 10% dragging Bitcoin below $30,000 while gold fell below its $2000/oz benchmark. Investors are beginning to factor in debt ceiling concerns as lagging income tax receipts move the deadline for default perhaps to some time as early as June. Finally, the Federal Reserve balance sheet declined 21B to 8.59T.

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