Orange whip?
October 28, 2020
–Stocks lower again this morning, with analysts blaming the surge in covid cases. As Dr Ngozi Ezike, Director of Illinois Health, explained in April, “If you were in hospice and had already been given a few weeks to live, and then you also were found to have COVID, that would be counted as a COVID death. It means technically even if you died of a clear alternate cause, but you had COVID at the same time, it’s still listed as a COVID death.” Similarly, if a momentous upcoming election, complete with urban rioting, gives stocks the jitters, it’s still listed as Covid. https://week.com/2020/04/20/idph-director-explains-how-covid-deaths-are-classified/
–It’s 33 degrees this morning in the Chicago area. Governor Pritzker decreed yesterday that indoor dining will be forbidden, but outdoor dining is ok. State troopers will enforce the law. Who wants an orange whip?
–We all know that the US banking sector has severely lagged the broader market. But you know what’s an even a bigger dog than US financials? European banks, expressed by SX7E, euro bank stocks. SX7E is approaching the March lows today.
— Rather boring Tuesday in rates. Once again yields eased a bit with tens down 2.3 bps to 77.8. The curve flattened with 2/10 in 2.3 bps to 63.1.
–$55 billion in 5’s today. According to twitter, “The Federal Reserve owns 22% of all marketable [treasury] securities, a new record.” They’re going to have to step up the buying if they want the 20% level to hold….
–It’s OXI day.
