Bond Market Jittery on Fed Comments, Onslaught of Treasury Supply, and a Jam-Packed Data Calendar

Mike Johnson’s narrow re-election highlights a divided GOP

Highlights

• Mike Johnson’s narrow re-election highlights a divided GOP

• Are consensus 2025 S&P 500 price targets too high after a historic two-year run?

• Treasury yields drift higher amid hawkish Fed comments

• Imports and EV sales soar ahead of possible Trump policy shifts

Key Takeaways

GOP Split Kills Trump’s Fiscal Dreams

• We learnt two things on Friday afternoon. That Mike Johnson won re-election of Speaker of the House (on the first ballot). And that we have such a fractious and divided GOP in the House that all the Trump tax goodies and fiscal stimulus that investors are salivating over never live to see the light of day unless accompanied by draconian budget spending cuts.