Market comment | Treasuries yields plunged, hitting historic lows. VIX soared to 32.

Summary

Covid-19 jolts equities and sovereign yields again as mounting coronavirus cases outside China fueled investor fears. In this context, market expectations for an additional ECB and Fed rate cut increased.

Key points

• Key points:
• The WHO affirmed that the covid-19 has the potential to become a pandemic.
• U.S. Treasury 10Y yield hit record lows, dropping below 1.30%. German yield followed the same path, hovering above -0.55%.
• Equities fell sharply with the Eurostoxx index declining further reaching October lows.
• The dollar whipped by global fears, while the euro rebounded to early February levels.

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