Coronavirus pulls US bonds to bottom levels

After the Fed’s surprise interest rate cut, for the first time in history, the bond interest rate, which saw the all-time low of 0.90 percent, was balanced at 1 percent.

AA Finance Analyst and economist Haluk Bür Spiderçi said that the markets might continue to fluctuate for a while after the 10-year bond interest rate dropped to low levels in the evaluation made on the subject.

Reminding that the said interest rates were 2.70 percent a year ago and 1.85 percent when entering the new year, Bür Spiderçi said, “The most important factor in this extremely rapid decline is the growing concerns that the coronavirus epidemic will significantly affect global growth, especially China and the USA. it looks. ” said.

Bür Spiderçi stated that the disruptions occurring in China, which is the most important supplier of the global manufacturing chain in the first stage, have negative effects on world goods supply and trade volume, and this effect is expected to strengthen significantly when combined with the contraction of demand.

However, pointing out that the rapid risk escape from the global recession perception is more effective than the global recession perception, the spider said:

“Because, even in the global crisis of 2008, there has not been such a sharp decrease in 10-year interest rates. Moreover, any epidemic’s impact on the economies for such a long time does not seem like a realistic scenario. Therefore, the Fed acted fast, considering the risk of financial stability, With an urgent meeting, he went to relax and emphasized that if necessary, he could come in. There is no similar negativity in China, except for the pioneering activity indicators PMI indices, which have fallen very hard in China. The long end of the curve may recover over time.In this context, it can be said that the markets will maintain its excessive fluctuation for a while due to the high uncertainties regarding the economic outlook, however, the Fed’s moves to the other central bank If the others follow, the panic air may dissipate in the markets and it should be accepted that the most positive development in terms of economic outlook can only be at this stage. “