The view from TD is that forecasting the extent of coronavirus contagion to the global economy or 'risk' is difficult.
But:
- "we don't expect the Fed to go more dovish simply because the market has become more nervous"
- yield on the 10 yr is significantly lower since the start of the year
- "We don't think the Fed is going to be a catalyst for a continued move lower in Treasury yields"
However, the Fed will keep an eye on developments re the virus, on market sentiment and potential cascade for risk-off.
They'll also keep an eye on what this guy wants, right?
