More Vaccine News Lifts Optimism

AstraZeneca announced this morning that recent trial results for its COVID-19 vaccine indicate its effectiveness could be as high as 90%. Today’s news marks the third week in a row that a drug-maker has reported such a breakthrough and renewed optimism has lifted equity indices while Treasury bonds have sold off slightly.

Another surprising bit of positive news also came our way from the Chicago Fed when it reported that its National Activity Index rose unexpectedly in October to 0.83 as September’s value of 0.27 was revised to 0.32. Surveys suggested no change in the index. The Ten-Year’s yield has moved up a couple of basis points to around 0.85% with the Long Bond little-changed at 1.55%. The Two-Year is unchanged at 0.16%. Crude oil is up slightly to just under $43 while gold has slipped around $5 to $1,866.