Market Snapshot February 10, 2020
Good Morning on this Fantastic Monday,
It is all about Coronavirus for now. News over the weekend that it has become more deadly than SARS was has gotten some attention. Additionally, there are new cases showing up in random places (ski chalet in France). Stocks wanting to surge but can’t right now, as they are waiting for the next shoe to drop on the virus. That there has not been a big sell off in equites is in itself a win. Bonds have improved and I sense have some more room in them. The 10-yr is at 1.55% today. MBS opened strong and are +10bps and that is on top of today being bond rollover day. There is no scheduled news this morning, but the week is going to be busy. If stocks crack, rates will improve. Locking here is a good idea. If even a false rumor comes out about a vaccine, rates will jump.
Make today great!