The Fever is Yet to Break

Markets giving us more of the same after unfavorable weekend reports of more, and more widespread, cases of coronavirus infections. The first fatality in America also occurred over the weekend. Bond prices are up and the Ten-Year Treasury isn’t yielding very much over 1%; 1.09% in early trading. Two-Year Treasuries are down to about 0.80%, and 90-day Libor has fallen to around 1.25%, its lowest since mid-2017. WTI has gained over $1/barrel in early trading but is still only around $46. Two closely watched PMI’s come out this morning, one from Markit and the other from the ISM. Both measures are expected to remain slightly above the expansionary level of “50.” That won’t matter today, but someday investors will return to monitoring fundamentals. Until then, the virus and its spread or containment, will continue to determine investor behavior.