Bill Gross, who is understandably delighted by the Summers resignation for the conventional reason that it means more QEasing is on deck, was prompt to put his thoughts to twitter, and conclude that not only is Larry-Off very Risk-On but it would benefit the belly of the curve, and lead to further 5s30s steepening as the 5 is bought.
Gross: Summers’s exit makes Monday a huge day for curve/risk on trades. Treasury 5/30 curve may steepen by 10. Stocks should do very well.
— PIMCO (@PIMCO) September 15, 2013