Something has gone haywire in the Government Securities Markets. This is apparent to everyone, but especially to those who follow the Markets closely.
Most of the media attention is focused upon the Stock Market, which has been cascading lower at a significant pace.
Dow Jones Industrial Average
For those watching the Market closely, they are aware that the Government Securities Market took an extremely peculiar turn on Monday and Tuesday of this week.
After reaching an all-time low yield of 0.38% on Monday afternoon, the Market began to increase and has remained relatively stable at around the 0.75% - 0.80% level.
This made absolutely no sense, given the rapidly escalating concerns about the coronavirus and the increasing probability of additional Fed action at their March 18th meeting. So there must be some other force or dynamic at play which is not necessarily obvious. After some detective work, I think that I may have discovered two, actually.
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