bonds Markets politics

Weary & Wary

Market participants headed into the holiday-shortened week weary of increasingly absurd political theatrics and wary of dour COVID-19 headlines. Moncef Slaoui, head of the US government's cartoonishly-named "Operation Warp Speed," told CNN Sunday that the first vaccinations in the US should begin "on the 11th or the 12th of December," immediately after expected FDA approval for Pfizer and BioNTech's shot, which the companies said last week is 95% effective. "70% or so of the population being immunized would allow for true herd immunity to take place," Slaoui told Jake Tapper. "That is likely to happen somewhere in the month of May. Or something like that." You have to love the qualifier: "Or something like that." "While we can’t predict how long FDA’s review will take, the agency will review the request as expeditiously as possible, while still doing so in a thorough and science-based manner, so that we can help make available a vaccine that the American people deserve as soon as possible," Stephen Hahn said Sunday. Markets are caught between assumptions about a brighter future in 2021 and the reality of lockdowns across western economies in the here and now. That tug of w
Subscribe or log in to read the rest of this content.

5 comments on “Weary & Wary

  1. Ria says:

    Long UST bond yields unfortunately are likely to decline significantly. Unfortunate because that will indicate just how much stress is out there in the real world. Unlike stocks, UST bonds exist more in the here and now. The here and now are just scary. Bonds will reflect that. Stock jockeys will be filling the airwaves with happy talk, but there is and will be a lot of pain and suffering in the real world ….

    • runamok says:

      Totally agree. I just don’t see bond yields rising from here. Especially now that the reflation trade is on the bench again, where it will probably remain until early spring. In the meantime, a dark winter, as you say…and an opportunity to start adding to positions.

      The Fed has got to be relieved that yields have backed off the last two or three sessions.

  2. Sophist 2020 says:

    Can someone please explain what Donald Trump was thinking back in the spring?

    On the one hand: his indifference and arrogance towards the Coronavirus task force, it’s members (those experts he picked, right? ) and his apparent belief the virus would just go away.

    On the other hand, authorizing the spending of $10 Billion (even in an era of multi-trillion deficits, no small spit in the budget bucket) on Operation Warp Speed. Was it all just a political calculation to try to seal the deal of the election? Or maybe it just reality show drama? Or was it just, oops?

    Now, the United States appears to be 4 to 5 weeks behind Europe, in terms of the second wave’s impact on economies. Happy Christmas! Happy year end market rally! And BTW, the Senate runoff election is just a week into the new year. Weary and Wary? Republicans should be screaming at Trump to go away instead of cowering in the shadows.

Speak your mind

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