The risk-off reaction to Trump’s positive Covid-19 test feels like the last of the Biden pricing is getting done. The quarantine will mean he misses three swing state rallies – with critical Florida among them. It also means the next debate will need to be shifted.
Currently, oil is the worst performer, down just over 2%, followed by the mini down 1.8%. Interestingly, Treasury yields haven’t risen..
…Biden spending plans might have been expected to drive demand into US Treasuries, but gold is a better hedge as the market tuns off the dollar; the yen’s gain is as expected, but the bid for CNH [Chinese yuan] stands out also.