Round Up the Usual Suspects

Bonds are running and stocks are faltering as coronavirus concerns make it a risk-off day. At the moment, the DJIA is off over 300 points while the Treasury’s Ten-Year is up a half-point for a yield of barely 1.50%. The long-bond that many thought had no value at 2% is now yielding 1.95%.

Fundamentally, the Philadelphia Fed’s Business Outlook Survey Diffusion Index of General Conditions came out this morning and it’s extraordinary ascension is largely being ignored. The January value of 17 was expected to fall to 11 and instead vaulted to almost 37. That’s huge! On a virus-free day, that might have had some impact, but that day is not today.