Grunion Run for Treasury Bonds

Yesterday’s bond rally continues this morning with growing virus fears that apparently grew some more overnight. The Ten-Year has broken through 1.50% to the downside and the long-bond has traded at yields less than 1.90%.

Fundamentally, a private, Markit PMI report has just come out with results that can only bolster the rally. Markit’s Manufacturing PMI came in at 50.8; down from 51.9 while the heretofore strong Services PMI cratered to 49.4 from 53.4. That’s a significant, and significantly negative reversal of fortune for Services. Good for bonds; not good for equities.