Billion in a targeted way somehow, but none of that has been deployed yet. There seems to be a willingness to wait and see, and wait for Pharma Companies to come up with solutions to the coronavirus testing and so on. Meantime, markets are selling off in terms of equities, and all that money seems to be flowing into bonds. Then we have the opec story as well on the side. ,ight now we are off our lows but down on the s p 500. No solace in the fact that we seem to be seeing deaths and cases decrease in china, and lots of fear out there. Airlines canceling more flights, and just continued, i dont want to say panic, but it feels like a tinge of panic in the air. The 10 year yield down to 64 basis points earlier on. Right now we are at 75 basis points. It seems like it was only the other day, because it was only the other day, that we were at 1. 30 , and been completely taken by surprise that this was below the alltime previous low. We were already at an alltime low. We are now at 75 basis
Myriad of things, hard to believe that congress is not going to get on and vote down any of those dynamics. But its got to be a series of things. It is not one silver bullet. I think they will do something. On the regulatory front, the banks in this country are in great shape. They have capacity. They have the wherewithal, the capital and liquidity to not exacerbate the problem what they have in past cycles, where they are piling on. I think theres room to continue to deregulate them and allow them support. Isolation is really key, and wiley country like singapore or china can do this effectively, how they can do it in the United States will be absolutely key. Jonathan acid a new discussion. Fascinating discussion. Great to see you. Lets get you some price action in this equity market. 32 minutes into the session, the equity market is down hard by 2. 87 . A wildbond market, just move on the 10 year treasury. That yield coming in at 21 basis points. The 30 year down by 29 basis points.
They are maintaining well above it. 30 years were at 69 basis points last week. 137. Hey are at we are seeing some recovery perhaps in the treasury market, and that is good news. Alix but a lot of criticism has been the fact they didnt address the commercial papers market, exactly where the help is needed the most. What are the steps they can take to address that . Michael they could set up a special Lending Facility to buy directly. That may be coming. Jay powell was asked if there ree actions th coming, and he said we are not ready to announce that. Are there no swap lines for the pboc . Theres a story floating around that once the feds its arthur dollars why have got swap lines with all the Central Banks, but not the chinese . Michael i would suspect probably because the chinese yuan is pegged to the u. S. Dollar. Dont know how much of a dollar problem they have. Theres always a rumor that the chinese are going to sell treasuries that never really comes true. Where we do see problem
These are the markets, not as sharp as the selloff is yesterday, but markets seem on hooks accounting for new cases coronavirus, and what happens to quarantines and isolations, and what happens to the economy. European stoxx 600 flat. Fell 6 if not more, now down 0. 3 . The u. S. 10 year yield, a good litmus test when looking at risk, s p futures up, they were lower a short while ago. At 10652. Lets get to the first word news. We begin with u. K. Prime minister Boris Johnson facing complaints of bad faith ahead of talks with the eu. Both sides are accusing the other of backing away from past promises. Johnson says it will take priority over a trade deal. Bernie sanders and Michael Bloomberg has escalated, mr. Bloomberg criticizing bernie control record, and sanders suggesting bloomberg could not win a debate against donald trump. Sanders is favored where bloomberg will be on the ballot for the first time. Michael bloomberg is the owner and founder of the Parent Company of bloomberg new
Hard not to because that is the alltime low on the 10 year treasury. It would have consequences. Reactionready seeing in stocks around the world potentially. This is all coming from the sentiments as we progress through the morning, and japan overnight and now in the united states. We started off the session in the positive and now we are lower by 1 apiece. Groups arethree lower now and you are looking at things like transportation, energy, the dollar Index Holding above 99. We backed off the highs there with gold futures, but that vix is still at 25 and likely will stay there. This is interesting. Guy lets take a look at what is happening here in europe. Lows. Just obsession just off session lows. The german tenyear now 52. Volatility continues to rise. We are watching this very carefully. Vonnie all of this began with the coronavirus and the number of cases in europe containing to continuing to rise. Italy with melody the latest. The number of cases continues to increase, but the spe