Today is Another Day, Scarlet

Yesterday’s huge equity sell-off is set to reverse itself at least partly this morning while the behavior of the Treasury market suggests that fewer investors feel the need to seek the safe haven of America’s sovereign debt. Or not. Has the Fed’s massive repo accommodation reduced fears of insufficient market liquidity? Have investors thoughtfully considered all the variables and concluded that the world is not actually going to end today? Have previous reactions now become over-reactions? Has the cancellation of day-to-day life made market participants feel safer? Well, all that is probably yet to be determined, but in the meantime, the Long Bond has slipped almost 3 points and is now yielding over 1.50%! The Two-Year is back to over 0.50% and the poster-child Ten-Year is sneaking up on 1%. For equity investors, futures point to a strong opening for the DJIA. Gold is up around $16 with WTI still languishing just below $33.