Market Moment

The Baker Market Moment is your way to stay on top of the latest in economic events and market-moving news. Whether it’s the latest news from the Fed or the latest number from Wall Street, the Baker Market Moment is where you can find it.

Markets Continue to Wander

Despite yesterday’s Senate passage of a paid-leave bill that has since been signed into law, investors remain nervous, cautious, fearful, and uncertain. Some of that is always with us, but seldom to this degree. Equities are experiencing another sell-off as bonds rally. The Treasury’s Ten-Year is up over a point

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Rate Cutting and Hand Wringing

Equity markets are poised to open WAY down as Treasury bonds are trading WAY up. Yesterday’s unexpected, by some, rate cut by the FOMC puts the policy rate back to the Zero-Bound. In addition, the central bank pledges to buy $700B of bonds. The move was intended to calm jittery

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Is More of the Same Still News?

Another day with bonds up big and stocks down bigger. The official declaration by the W.H.O. that the COVID-19 outbreak is now a pandemic along with a new U.S. travel ban excluding travelers from Europe have combined to spark new reactions and escalate old ones. Last night’s Presidential address that

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Bonds Give Up Gains, Stocks Keep Losses

After a tumultuous morning, the Treasury’s Ten-Year has given back most of the one-point gain it enjoyed earlier in the day, and its yield has scooched up to around 80 basis points. Equity markets continue to reel with the DJIA down around 1,200 points. Details on a proposed fiscal stimulus

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Is “More of the Same” Still News?

Today is beginning with another massive sell-off in equities and another massive rally in Treasury bonds. Yep, the coronavirus is still going viral. Overnight, the Bank of England cut its 75 basis point policy rate by 50 basis points in an emergency attempt to do something constructive. That doesn’t leave

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A Reversal of Some Fortune

Today has begun with Treasury yields moving off of some all-time lows to levels that aren’t much higher than all-time lows. With the DJIA poised to open significantly higher after yesterday’s historic 2,000 point sell-off, the Long Bond’s yield has been raised to higher-than-one-per-cent, the Ten-Year is yielding just north

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Economy Adds Jobs, but no Anti-Virus

This morning’s Jobs Report from the BLS would normally be a headline grabber except they’ve already been grabbed by the coronavirus. The American economy added 273k jobs in February against an estimate of just 175k while the total for the prior two months was revised with an additional 85k over

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Fear Factor Fall-Out

The declaration of a coronavirus state of emergency by the State of California has surely contributed to an elevation of investor angst as a refreshed risk-off attitude drives bond prices up and equity values down. Ten-Year Treasuries are up more than a full point in price for a yield of

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Spending Bill Rallies the Rally

The late afternoon announcement of an emergency spending bill aimed at combating the spread of the coronavirus has turbocharged an already big equity rally. The DJIA rose by 1,173 points today while bond prices have had to give a little back. The move to 1.03% on the Treasury’s Ten-Year needed

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Is Bullard Front-Running Powell?

James Bullard, President of the St. Louis Fed and non-voting member of the FOMC, just got through telling Bloomberg News that observers should not put too much weight on what the Committee might or might not do when they meet later this month. Does he really think they won’t? The

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That was Interesting, Jerome. Now What?

If today’s unanimous decision by the FOMC to effect the largest rate move since 2008 was meant to bring calmness and tranquility to nervous equity investors, it didn’t work. Apart from the magnitude of the cut, timing it on a non-meeting day underscored and highlighted its significance and was meant

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Fed to the Rescue!

“The coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by one-half percentage point.” This statement was just

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The Fever is Yet to Break

Markets giving us more of the same after unfavorable weekend reports of more, and more widespread, cases of coronavirus infections. The first fatality in America also occurred over the weekend. Bond prices are up and the Ten-Year Treasury isn’t yielding very much over 1%; 1.09% in early trading. Two-Year Treasuries

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More of the Same; Bonds Up Big

Nervous investors continue to seek the safety of Treasury bonds and yields continue to fall. The closely watched Ten-Year is up about 3/4 point resulting in a yield less than 1.20%. The Thirty-Year is below 1.70% and the Two-Year is now less than 1%, and so is the Five-Year. Market-based

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Contagion Concerns Continue

The day begins with another hard sell-off in worldwide equity markets and another big rally in credit markets. Uncertainty over the ultimate breadth of the coronavirus contagion along with the beginnings of quantifiable evidence of economic damage is taking its toll as health organizations warn of the inevitable spread of

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