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 infections around the globe. Market fundamentals have taken a back seat to the virus-effect and will likely stay there until the pandemic potential abates. At the moment, the DJIA is down over 500 points while the Treasury’s Ten-Year is yielding a new low of 1.25%. That reflects a three-quarter-point price rise. The thirty-year’s yield has fallen to 1.75%.