Stock Market Update

[BRIEFING.COM] The pent-up angst about the election has been unfurled today, evidenced by the 20.8% plunge in the CBOE Volatility Index to 16.23. Basically, the hedging interest to guard against downside risk related to the election is being dialed back as it is clear the result won't be contested and that the outcome lends itself to market-friendly policies of lower tax rates and deregulation.

A potential growth spoiler -- for the stock market and the economy --is rising interest rates.

The 2-yr note yield is up six basis points to 4.27% and the 10-yr note yield is up 15 basis points to 4.44%, slightly below their high yields for the session in front of the $25 billion 30-yr bond auction results at 1:00 p.m. ET.

The steepening yield curve is reportedly helping banks today (they borrow short and lend long), yet the jump in yields follows a drop in prices, so the mark-to-market values of their Treasury holdings isn't being helped by today's action.