Good Morning on this fantastic Wednesday and best day of the week,
It is April 1st , a joke is in order but I’ll pass and we can get right into the beginning of Q2. Total focus today is on the comments from yesterday’s virus update. President Trump used words he has never uttered before, that the next two weeks will be hell for the virus spread and new forecasts that 100K and 240K US deaths expected now as the spread multiplies and people are being encouraged to stay at home.
Financial markets are all over the board. Dow down 850, Treasury Yields are now back down to .62% and mortgage bonds are seeing no support from the Fed today, so are off 40bps. Tomorrow we will see the typical Thursday unemployment numbers and I am seeing estimates from 1.5mm to 4.5mm new claims.. It is unfathomable. There is not much to say about financials right now other than the ride will come to an end and things will settle down. When it does, I expect rates to be low (lower) and the programs to slowly come back.
More importantly, I thought I would share a piece from the WSJ that answers several questions on Covid-19. Here is a link to the article. I found it very interesting.
Please be safe and stay healthy.
Make today great!