COVID-19 and Risk Asset Ramifications

Backdrop:

The S&P 500 closed down 7.6% today the worst day since the depths of the financial crisis in December 2008, (triggering a circuit breaker for the first time in 23 years), the yield on the 10-year note dropped below 0.5% for the first time ever, the 30-year breached 1.0%, bringing the whole US yield curve below 1% for the first time, and oil sold off ~20%. The driver? The headlines focused on Saudi Arabia’s’ decision over the weekend to start a price war, as tensions continue to escalate with Russia, sent oil prices down by the most since the Gulf War in…