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The US 10-year Treasury yield drops below 1.60% for the first time since October. This was on a session whereby the concerns over the coronavirus again dominated financial markets amid a general risk-off environment.

The usual suspects were benefiting, such as the yen and fixed income, while equities struggled. to add to th gloom and doom, we also saw some soft data and troubles in the Middle east rearing their ugly head again. There were unconfirmed reports that the Taliban downed a US fighter jet in Eastern Afghanistan.

Intermarket wrap

The S&P 500 was off 1.57% in the close%, down 51 points. The yield on the US 10-yr note is currently 5.33 lower at 1.6020%. Oil also reflected the weakening demand outlook. WTI fell 2.5% to USD52.9/bbl and gold rose 0.5% to USD1579.2/oz on safe-haven demand.