• You’d think that Asian equity markets would also blow the roof off after the epic relief rally in Europe yesterday afternoon. However, gains for US equities had petered out towards the end of the session and Asian equity markets are only moderately higher this morning. Still, US Treasury yields are up strongly, with the 10y trading at 0.91, up from 0.80 before the vaccine headlines but off the high of 0.98. Without a doubt some optimism regarding the vaccine breakthrough is waning.
  • Regarding the vaccine, key questions remain unanswered: how well it will protect elderly and vulnerable people; if you can still spread the virus when vaccinated; and if it prevents severe disease. Furthermore, the trial data still needs to be peer reviewed, there needs to be emergency regulatory approval and then there are the logistic challenges. In any case, we provided a full overview of the vaccine further down below.



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