Morning 3-11

The Bank of England out with a Bold inter-meeting move in rates and Fiscal spending. The BOE announced an aggressive 50 bps cut taking lending rate to .25%
BoE unanimously voted for an emergency 50bps rate cut to 0.25%also voted unanimously to introduce a new term funding scheme with additional incentives for small & medium sized enterprises, unanimously voted to maintain QE; lowered counter cyclical buffer to 0% from 1%, expect to maintain 0% rate for 12 months; BoE will take all further necessary steps to support the economy; minutes from meeting will be released a 12 on March 13th; BoE coordinating with tsy & international counterparts (ITC Markets)

BOE is coordinating actions with those to be outlined in the Chancellor’s Budget later today; Chancellor will announce a series of measures to help biz & households; the new funding scheme will be close to bank base rate (acronym TFSME); can cut bank rate further ,to close to but above 0%; BOE will take all further steps to help the UK

GBP initially sold off on news dropping a 100 ticks, Gilts didn’t do much of anything at first but are down 100 ticks or so as expectations are for an increase in gilt issuance and Bunds rallied initially but have since sold off aggressively down 77 ticks on day, Possibly worried about Fiscal measures that will be announced soon thus more bund issuance? ECB meets tomorrow and it would show a bit of Force if ECB cut rates along with the announcement Fiscal measures, similar to what BOE did. European Stocks rallied on BOE announcement but now have given back most of overnight gains as Spoos and Nasdaq continue to trade lower. Spoos with another 100-handle range Nasdaq 200 handle range, No Announcement of U.S. Fiscal help the cause for Drop in Spoos which are lower by 3.2% Nasdaq -2.9%

President Trump promised a Stimulus package to be unveiled but that never came to fruition, it doesn’t appear that one will be announced soon as the House leaves for Spring recess at end of week. This along with the total number of U.S. cases surpassing 1000 has the markets feeling a bit of angst, again. Some experts saying that U.S. is 10 days behind Italy’s progression, so this has many people feeling a bit nervous as Italy has 10,000 case and 638 Deaths. “France, Spain and Germany are about 9 to 10 days behind Italy in COVID-10 progression: the UK and the US follow at 13 to 16 days. In Italy we waited too long, these countries should really start implementing aggressive containment measures now.” Silvia Merler
• BOJ pledged to ease next week
• ECB expected to Ease in some way shape or Form tomorrow
• Italy will spend 25B euros in measures
• Treasury Volatility and poor liquidity may be the new norm per Bloomberg

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