Market comment | Uncertainty pushes rates to unknown limits

Summary

Financial markets remain volatile with the concerns about the virus spillover effect being the main market driver. Declines in the equity markets have resumed, as market risk measures (VIX) soar and U.S. yield reaches new lows.

Key points

• Key points:
• Widespread uncertainty causes volatility across markets globally.
• Risk-off mood intensifies, leading financial markets to increase further interest rate cut expectations.
• Sovereign bond yields extend declines.
• Organization of Petroleum Exporting Countries (OPEC) has reached an agreement to propose to non-cartel producing countries.

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