Yet Another Trillion Dollars

The stockmarket had an extremely strong day in the US last night with the S&P 500 finishing up 7.08%. It has been the biggest 10-day rally since 1938.

The US Treasury last night provided detail around its plan to remove toxic debt from the banking system by combining government funds with private funds to buy 1 Trillion USD worth of bad debt assets from banks. For more details see http://www.bloomberg.com/apps/news?pid=topnews

The 90-day June futures have sold off 7 or 8 points this morning in response and are now at the equivalent of 2.88%. In my mind however further easings remain likely.