Good Morning on this fantastic best day of the week Wednesday,
Stocks on sale with the Dow down more than 600. Treasuries are strong this morning with the yield back down to .69%. Mortgage bonds not seeing much love. There was no meaningful news this morning but the equity markets are reacting to the frightening surge in virus cases around the world, as well as news that hedge funds are starting to re-balance from equities to bonds. As the selling continues in this scenario, it will also accelerate. Some states are seeing record cases of Covid each day and no, this is not because we are testing more. Clearly hospital bed numbers in use around the country are rising faster than ever. New York just imposed a 14-day quarantine for anyone entering the state from another hot spot.
Tomorrow we get GDP. If mortgage bonds do not improve further before the end of the day, it is a good idea to lock.
Please remain safe and stay healthy, make today great!