Weekly Economic Update: March 23rd, 2020
• Bond yields continued to their trek towards 0% as the two-year Treasury note fell to 32 basis points while the 5-year Treasury note finished the week at 46 basis points.
• In addition to QE, the Fed is pulling out the heavy artillery to sustain liquidity by stepping into corporate debt markets as investors flee risk assets.
• With massive layoffs already underway the economy is expected to contract sharply with some estimates forecasting by more than 10%.
• With the Fed and lawmakers acting with urgency the direction of the global economy lies in the hands of public and private health professionals and their ability to put an end to the ongoing pandemic.