(New York)

The market is doing what everyone hoped it would. Just as the big losses of the last few weeks saw both stocks and bonds falling at the same time, both markets are now rising in unison. Stocks rose strongly on Friday and are up on positive news out of China today, while bond yields are also falling. China had its biggest trading day in three years as the government announced it would support the economy following the slowest economy growth in nine-years.

FINSUM: One thing to watch in Treasuries is that there is such a supply of them right now that demand itself is starting to negatively affect the bonds. Therefore, it is not just the Fed and rates weighing on Treasuries, but the sheer volume that the market is having trouble consuming.