Daily Market Color September 15, 2020Risk Assets Rise on Vaccine News Treasury yields remain rangebound ahead of the September FOMC meeting. US equities rose yesterday and are higher once again to start the day after some better than expected retail data out of Europe and China. Treasury yields and swap rates are little changed ahead of tomorrow’s rate announcement and press conference- Fed Funds futures implying virtually no likelihood of a rate hike or cut. The VIX or “Fear Index” has continued to fall in recent days, but remains elevated at 25.3. Oil prices continue to drop as demand tumbles. This year, global oil demand is projected to fall by 9.46M per day, higher than OPEC’s last estimate a month ago. To address to drop, OPEC agreed to cut global output by 9.7M barrels/day. Leaders are set to meet on Thursday to discuss current demand and could potentially elect to drop output again. Economists forecast OPEC will leave the supply pact as it is. Ahead of the meeting, crude oil fell to $37.94/barrel. Fed appoints Trevor Reeve as senior advisor to Chair Jerome Powell. In his role, Reeve will participate in the FOMC meetings and prepare briefings and strategies. Powell commented, “His keen insights and advice have been indispensible to my colleagues and me.” The decision comes just as the Fed begins their September FOMC meeting later today. Reeve has been heavily involved in monetary policy over the past few years, including the Fed’s latest extensive review of its tools and objectives.