The various state economic shutdowns, particularly devastating to small businesses such as non-chain restaurants, has taken a serious toll on the US and global economies.
We can see the effects in the US Treasury Actives and US Dollar Swap curves. Compared with 03/02/2020, both the Treasury yield and US Dollar Swaps curve have steepened on the short-end.
Residential mortgage rates in the US have fallen over 100 basis points for the 30Y Fixed-rate mortgage. Mortgage rates are converging to near 3%.
And bond volatility has declined to an all-time low with The Fed’s rapid monetary expansion.