Ten year at 1.58%. Did I get that right? I looked three times. That is a 3 basis point flat curve, we cannot even afford a bond trader today. Global trade is the mechanism, the quarantines. Epidemics are the worst. A big rush to 'safe assets', assets in the hands of the competent primary dealers.
Stocks broke even on the day, after a good start; evidence that the severity was unexpected, underpriced. Watch California, they have the technology trade and operate the western ports. California had already reduced growth by half, from the high 4% range, however. They will not stall at a 2% growth, but cities will be under severe pension stress. There is a deflationary force, as seen by oil prices, and that force is killing sales taxes.
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