Daily Market Color October 23, 2020Benchmark 10-Year Treasury Yield Hits Highest Level Since June Rates continued to move higher as stimulus talks press forward After dipping slightly earlier in the day, rates and equities turned higher after House Speaker Nancy Pelosi signaled Congress is close to a compromise. The White House raised their offer to $1.9 trillion from $1.8 trillion, closing in on the $2.2 trillion bill Democrats last proposed.Rates and risk assets both rose on news of progress, the S&P 500 and DJIA each closing 0.50% higher on the day while the 10-year Treasury yield hit its highest level since June at 0.84%. Bank stocks had their strongest day in months, the S&P Regional Banking Index following rates higher to climb 5.19%. Virus Update The FDA has approved Remdesivir as a COVID-19 treatment, the first drug of its kind to be approved. The treatment developed by Gilead Sciences is said to shorten recovery times for patients diagnosed with the virus. The company claims they are already meeting current demand and will continue to do so even if cases spike dramatically once again. The FDA approval comes just as US hospitalizations for the virus have risen to a two-month high. Global infections are on the rise as well as German cases hit a new record high while Spain’s health minister called the virus “out of control.” Global cases are nearing the 42 million mark while fatalities have topped 1.14 million. FX Friday The US dollar index hit a seven-week low on Wednesday as stimulus talks and the uncertainty of the presidential election continues to steer markets. The yen is on track for its highest weekly rise since September, rising 0.2% to 104.70 per USD on Thursday after Congress failed to reach a comprise on a stimulus bill. The euro ticked up 0.2% against the dollar to $1.1844 as positive German manufacturing PMI figures offset concerns regarding the second wave of COVID-19 infections in the eurozone.