Mnuchin: Trump wants to help small businesses, economy
U.S. Secretary of the Treasury Steven Mnuchin says the third coronavirus relief bill is meant to provide loans, checks and liquidity to hard-working Americans and small businesses.
Billionaire “Bond King” Jeffrey Gundlach says the action in the bond market suggests bailouts to prop up the U.S. economy from the COVID-19 pandemic are not only coming, they're going to be big.
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The benchmark 10-year yield finished Tuesday’s session at 1.07 percent, more than 75 basis points above the record low reached on March 10. Bond yields, which are the returns an investor realizes on a bond, rise as prices fall.
“I think that's because the market is wrapping its head around the fact of how much stimulus there might be, how many bonds there might be,” Gundlach, CEO and chief investment officer of Los Angeles-based DoubleLine Capital, said on a webcast on Tuesday evening. The firm has over $148 billion in assets under management.
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Treasury Secretary Steven Mnuchin said earlier in the day that the White House and Senate Republicans are working on a $1 trillion stimulus package aimed at propping up the sectors of the U.S. economy most heavily impacted by the COVID-19 pandemic, including airlines, cruise operators, hotels and restaurants, as well as giving checks to individuals to keep money flowing through the economy.
COVID-19 has infected 6,496 people in the U.S. and killed 114, according to the latest update from Johns Hopkins University & Medicine. The pandemic has brought the U.S. and global economy to a standstill by prompting “shelter in place” orders, social distancing between people and the cancellation of non-essential travel.