Markets are behaving as if the worst of the virus outbreak (fears) are behind us, or that at least that no doom scenarios have to be priced in. • Treasury yields have erased yesterday’s declines, though with the 10y trading at 1.64 it’s still below its recent trading range of 1.70-1.90. Furthermore, the yield curve is still close to inversion, with the 3m/10y spread trading at just a couple of basis points. Finally, USD OIS are still closer to pricing in two than one rate cut. Asian equity markets are mixed this morning, with the Nikkei showing a 0.7% gain though Hong Kong, which reopened today, was down a relatively modest 2.7% at pixel time.

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