Earlier today, Moderna announced that results of clinical trials for its COVID-19 vaccine have proven to be 94.5% effective. Company officials are hopeful that regulatory approval could come in the coming weeks. Similar to last Monday’s announcement by Pfizer, this morning’s news has equity markets poised to open substantially higher while Treasury bonds endure another, but milder, sell-off.
In early trading, the Ten-Year’s yield has moved up slightly to 93 basis points, the Long Bond has been pushed to 1.68%, as the Two-Year is little changed at 18 basis points. Crude oil is up about a dollar-and-a-half to $41.65 while gold has slipped about $15 to $1,874. A little later, the New York Fed is expected to report that its Empire Manufacturing Index improved this month to 13.8 from 10.5.