Fear Up Big; Bonds Up Bigger

As concerns mount over the spread of coronavirus cases around the world, equity markets are reeling while safe havens like Treasury bonds become the beneficiary of investors’ angst. In early trading, Ten-Year Treasuries are up about one point in price and that has pushed its yield down to around 1.35%. The Long Bond is yielding a lofty 1.80%. At the moment, the DJIA looks to open as much as 800 points down.

The Chicago Fed has just released its National Activity Index and it came in at minus 0.25; minus 0.18 was expected. The prior month’s value was minus 0.51. The Dallas Fed will release a similar report a little later this morning and is expected to show a very slight improvement over January’s level.