BNO - Capital Markets Weekly: COVID-19 And Energy Market Stand-Off Generating Acute Uncertainty
As forecast last week, the spread of COVID-19 has generated severe financial market volatility, which was substantially worsened by the breakdown in production discipline within the global energy market, reflecting the stand-off between Russia and Saudi Arabia.
This has triggered further severe falls in global stock markets, a sizeable rally in safer debt instruments, and further risk aversion towards riskier assets:
- Early in the week, the entire US Treasury yield curve moved briefly to yield levels below 1%. Over one month, 10-year Treasury yields have declined by roughly 1%
- UK bond yields have moved to