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February 24, 2020 | Bond Yields Crash and Gold Soars on Pandemic Threat

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
The 30-year long bond yield crashed to a record low, gold jumped, and equities hammered as fears of a pandemic mount.
The stock market has finally come to grips with the notion the coronavirus is not contained. Cases are rising exponentially in South Korea, Italy, Japan, and Iran.Equities Smashed, Gold Jumps

  • S&P 500: -3.2%
  • Nasdaq: -3.74%
  • Dow: -3.14%
  • Gold: +$26 to $1675, +1.59%
  • West Texas Crude: -$2.66 to $50.72, -4.98%

Numbers from 11:00 AM Central.

30-Year Bond Yield at New Record Low

Recession Bells Yet Again

The above chart is from Friday.

Inversions do not look as tight because in the prior two recession the 30-year bond inverted with the 3-month.

Even with today’s record low move there is still 23 basis points of spread between the 30-year and the 3-month yield.

There is also 45 basis points between the 30-year and 10-year.

Largest Shipping Decline Since 2009

Please note we have already witnessed the Largest Shipping Decline Since 2009 and That’s Before Coronavirus hit.

Recession is calling.

Mike “Mish” Shedlock​

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February 24th, 2020

Posted In: Mish Talk

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