Today's climb of 889.35 points, or 10.9%, in the Dow Jones Industrial Average to 9065.12, included gains in all 30 of its components.
The catalyst for the move: News that sales of longer-term commercial paper soared 10-fold after the Federal Reserve began buying the corporate paper.
Companies yesterday sold 1,511 issues totaling a record $67.1 billion of the debt due in more than 80 days, compared with a daily average of 340 issues valued at $6.7 billion last week, according to Fed data. The Fed began buying commercial paper from companies yesterday.The central bank probably absorbed about $60 billion of the total, said Adolfo Laurenti, a senior economist at Mesirow Financial Inc, according to Bloomberg.
It's possible the Fed sterilized this buying, but if they didn't money supply is gong to rocket.
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