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Market comment | COVID-19’s rapid global spread sends risk assets into a tailspin

Published on Friday, February 28, 2020

Market comment | COVID-19’s rapid global spread sends risk assets into a tailspin

There was a very sharp risk-off mood across global financial markets this week, as COVID-19 spread rapidly beyond China. The 10Y U.S. Treasury yield hit a new record low, 1.17%, while risk premia widened in the European periphery and EMs; major central banks tempered expectations of rate cuts.

Key points

  • Key points:
  • China pursues further targeted measures to address COVID-19 impact.
  • The U.S. dollar lost some ground, while the euro edged higher. EM FX depreciated across the board.
  • Equities extended sharp declines. VIX above 45.

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