Daily Market Color July 19, 2021Rates Hit Five Month Low on Growth Fears Bonds rally as equities fall on growth concerns Bonds rallied today on a risk-off sentiment as COVID cases spike across the globe. Swap rates and yields fell across a flattening curve as investors rushed to safe-haven assets as economic recovery concerns arise. After dropping as much as 12 bps during trading, the 10y UST yield closed 10 bps down from Friday’s close to hit a five-month low at 1.19%. All three major equity indices fell with the DJIA having its largest decline since last October. U.S. issues “Do Not Travel” warning to the U.K. The recent spread of the COVID delta variant has brought with it fresh COVID restrictions worldwide. Mask mandates have cropped up throughout the U.S. in recent weeks, and today the U.S. State Department issued a “do no travel” statement to the U.K. Economic data this week An overall quiet week for economic data in the midst of 2Q earnings season. On Thursday, initial jobless claims will be released as well as existing home sales. On Friday, the flash PMI will be printed, and can provide more data on potential inflationary pressures.