There has been significant turmoil year-to-date in the financial markets as fear rises over the spreading COVID-19 and its uncertain impact on global economic growth. Equities have fallen at an unprecedented rate, erasing $20 trillion in global wealth over the past three weeks, while U.S. Treasuries have rallied dramatically. Ten-year yields have fallen to record lows (at one point this month hitting 0.32% intraday). Within the bond market, all “risk” has sold off, including corporates, securitized product, and high yield bonds. Until last week, bond market trading remained orderly with only pockets of illiquidity. That changed last Thursday as trading costs of even the current and off-the-run (older issues) U.S. Treasuries rose and have continued to rise at the start of this week.
- Market performance and data as of each Friday’s close
- Update on policy actions
- Liquidity measurements
- Sector summaries and notes on LIM exposures