The Other Side of the Virus Reaction

Financial markets are reacting to last week’s over-reaction as equity markets regain lost ground and bond markets surrender ground previously claimed. Ten-Year Treasury Notes have slipped over a half-point in price and that has pushed the yield almost back to 1.60%. The DJIA is up almost 400 points so far with gold giving back around $15.

On the data front, the ISM provided a pleasant surprise with the news that its Manufacturing Index has regained growth levels with a BIG move to 50.9 from 47.8. This measure slipped below the tipping-point level of “50” last August and has been there until now.