Daily Market Color

Global Virus Concerns Pull Rates Lower

Risk assets pull back as global concerns around the new virus strain in the UK outweigh stimulus progress
After touching record highs last week, major equity indices were mixed on the day – the S&P 500 and Nasdaq fell 0.4% and 0.1%, respectively, while the DJIA rose 0.1%. The VIX, or the “fear gauge,” jumped 16.6%, its highest close since early November. Treasury yields and swap rates fell moderately across the curve – the 10-year UST yield closed 1 bp lower at 0.93%.
House and Senate leaders compromise on $900 billion stimulus bill
The bill includes $300-a-week unemployment benefits, $600 direct payments, $284 billion for PPP loans, and $8 billion for virus distribution.  Congress is set to cast their votes this evening.
Multiple nations restrict travel from Britain as global virus cases near 78 million
Austria, Belgium, Bulgaria, France, Germany, Ireland, Italy and the Netherlands are some of the countries who have already imposed travel restrictions.  The US has not yet taken such precautions, despite public remarks from politicians such as New York Governor Andrew Cuomo to do so, who warned that “if it’s been flying around the world, it will be here.”
Reminder: markets will close early on Thursday and be closed on Friday in observance of Christmas Day.

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