Bond Yields Sink on Virus Fears
With concerns over trade and a government shutdown pushed aside for the foreseeable future, the bond market attention was expected to shift to economic data. That data has generally been better-than-expected in recent weeks which suggest that yields might drift higher, but instead they’ve moved lower. The primary reason is the outbreak and spread of the “Coronavirus,” a respiratory virus which originated and seems to be mostly contained in Wuhan, China and neighboring cities. Wuhan, home to 11 million people, was locked-down yesterday with public transportation halted and citizens not permitted to leave or enter the city.