Coronavirus will ‘definitely’ slow US growth: Scott Shellady
Scott Shellady of The Cow Guy Group at Marex Solutions discusses the endurance of coronavirus’ impact on the U.S. economy and President Trump’s request for funding to fight it.
The 10-year Treasury yield sank to a record low Tuesday as concern about economic damage from the growing coronavirus outbreak steered investors away from stocks and into safe-haven assets like U.S. government securities.
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Tuesday’s stampede into Treasurys pushed the yield on the 10-year note down by as many as 5.6 basis points to 1.321 percent, its lowest on record.
“Markets are starting to price in the impact of the coronavirus on the global economy but there remain significant uncertainties,” Mohamed El-Erian, chief economic adviser at Allianz, told FOX Business. “These uncertainties relate to more than the impact of the virus, including how quickly it can be contained and its adverse effects reversed.”
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The outbreak, which originated in Wuhan, China, has caused the lockdown of hundreds of millions of people in the country, paralyzing supply chains and forcing companies to temporarily shutter or reduce operations.
The disruption so far is expected to slow U.S. first-quarter gross domestic product growth to 1 percent, after which it may gain momentum to expand at 1.8 percent, 1.5 percent and 1.8 percent in the second, third and fourth quarters, respectively, according to economists at JPMorgan Chase.