Daily Market Color December 28, 2022China Reopening Continues to Impact Markets Yields mixed as market continues to digest China COVID-19 news. Treasurys were mixed today, the 2-year yield decreasing ~3bps to 4.35% and the 10-year yield rising ~4bps to 3.88%. The move came amid mounting concerns of a global increase in COVID-19 transmissions after China eased their quarantine policies yesterday. Equities suffered on the sentiment, with the S&P 500 and NASDAQ suffering losses of 1.20% and 1.35%, respectively. China reopening renews COVID-19 worries. As China prepares to fully reopen in January, nations across the world are discussing restrictions on Chinese travelers who are jumping at the chance to go abroad with outbound flights from mainland China jumping 254% on Tuesday vs. Monday. Given the increase in outbound travel, COVID-19 concerns are top of mind. Figures are unreliable, but some estimates say that almost 37 million people may have been infected by COVID-19 in a single day in China last week. The outbreaks are driving short-term domestic economic shocks, and spurred concerns of a new variant originating in the country. Japan recently announced required testing for visitors from mainland China, and India has started random testing at airports. The U.S. is considering similar steps. Day ahead. A quieter session tomorrow will start with the release of initial jobless claims data at 8:30 AM ET, where the number of Americans filing claims for unemployment benefits is expected to increase to 225,000 from 216,000 last week. Crude oil stock change data will follow at 11:00 AM ET.