‘Tin Hat’ Time In FX As Duration Goes ‘Offer-less’ Amid Quarantine Panic

Global coronavirus cases topped 99,000 on Friday, and markets quite simply melted down, especially in rates, where a panic unfurled. Equities closed well off the lows on Wall Street, but the action was harrowing, as it's been all week. "Duration [went] 'offer-less'", Nomura's Charlie McElligott wrote, documenting the series of limit-up, circuit-breaker halts in Ultras and the absolute crash in long-end yields. "[This is] an investor climate that is fixated on 'imminent global recession' via pan

Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today for as little as $7/month

View subscription options

Or try one month for FREE with a trial plan

Already have an account? log in

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

3 thoughts on “‘Tin Hat’ Time In FX As Duration Goes ‘Offer-less’ Amid Quarantine Panic

  1. “And, obviously, 30-year yields are seeing an absolutely insane daily move amid what, on many levels, can be described as an unprecedented couple of weeks for USTs.”

    This is not panic yet.

    Given that Fed futures gives a 98% chance of at least another 0.5% rate cut, I’d say that the market is pricing in the cut as a near certainty. So I’m not really surprised at the action, considering the US govt seems to be inept in its response to the virus and we haven’t even begun to see the virus spread (well we really don’t know, do we?).

    Flash forward to Manhattan ERs overwhelmed with the dying, and it all seems appropriate. I would not trade any bounces until later next week.

    As the virus spread goes exponential, so will the news flow.

NEWSROOM crewneck & prints