The markets are faced with many more violent swings in the next week as the investors are going to be watching out for the rising number of the cases of coronavirus and the newer data may show that the virus is slamming the economy to the ground in the United States. The last week had crushed the stock investors as there was a decline of 17.3% which had been there and this was the worst week post the October of 2008. However the credit markets which are stressed out were at the very pinnacle of pain with the standstill being in the corporate paper and therefore spreading wide in a lot of areas from the mortgages to the corporates.
With the economists now looking for a sharper downturn in the economy form the social distancing impact, the Fed has in the previous week continued firing away on the newer programs and the liquidity for the greasing of wheels in the markets which were already nervous. By this Friday, dollar had stopped its surge and the Treasury market had been a lot calmer as the 10-year benchmark yield having slid below the level of 1% after a higher ride in the week before.
The Federal Reserve had been buying close to $70 billion in the Treasurys which is going to take their purchase overall in the week to $300 billion as per the experts on Friday. $160 billion had been the highest which had been bought in any week when the financial crisis had been going on. In the coming week, fresh data is expected and it is said to not be very encouraging.