Jun 19, 2019

Draghi sends bond yields negative all over Europe

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Data: Investing.com; Chart: Axios Visuals

European Central Bank President Mario Draghi signaled that more stimulus is coming for the eurozone in a speech Tuesday morning.

What's next: The new measures are likely to include the central bank lowering interest rates below the current -0.4% interest rate that already means some depositors pay the ECB to loan it money.

  • Yields on Europe's benchmark, German 10-year government bonds, fell to a new record low of -0.32% following the comments.

The intrigue: Yields on 10-year French government bonds fell below 0 for the first time ever, and yields turned negative for 10-year government bonds in eurozone members Austria and the Netherlands.

What else: Bonds are turning negative for European countries that aren't even overseen by the ECB.

  • Sweden, an EU member with its own central bank, saw its rates turn negative for the first time ever. Denmark also now has negative interest rates, as does Switzerland, which is not even a member of the EU.

What to watch: "It is important to remember that Draghi is on the way out as his term as bank President ends this fall, so it is not clear that he will preside over additional cuts before he is done," DRW Trading market strategist Lou Brien wrote in a note to clients, "but he has indeed thrown down the gauntlet to his successor, who may or may not appreciate it."

Go deeper: Trump goes after ECB as euro drops against the dollar

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Tariff worries hit record high amid coronavirus outbreak

Data: CivicScience, margin of error ±1 percentage points; Chart: Axios Visuals

Concern about President Trump's tariffs on U.S imports grew to record high levels among Americans last month, particularly as more lost their jobs and concern about the novel coronavirus increased.

Driving the news: About seven in 10 people said they were at least somewhat concerned about tariffs in March, according to the latest survey from CivicScience provided first to Axios.

U.S. coronavirus updates: Largest 24-hour spike in fatalities

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

New York's death toll from the novel coronavirus surged to its highest one-day total on Tuesday, as the U.S. saw its largest 24-hour spike in fatalities, per Johns Hopkins data. Recorded deaths across the U.S. surpassed 12,900 early Wednesday.

Why it matters: State officials have stressed that lockdowns must continue even if cities begin to see slight improvements from social distancing. Several hot spots, including New York, New Orleans, and Detroit, are expected to peak in the coming days.

Go deeperArrowUpdated 41 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12:30 a.m. ET: 1,430,453 — Total deaths: 82,133 — Total recoveries: 301,385Map.
  2. U.S.: Total confirmed cases as of 12:30 a.m. ET: 399,081 — Total deaths: 12,907 — Total recoveries: 22,461Map.
  3. Federal government latest: Acting Navy secretary resigns over handling of virus-infected ship — Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill — Trump said he "didn't see" memos from his trade adviser Peter Navarro warning that the crisis could kill more than half a million Americans.
  4. States latest: California Gov. Gavin Newsom is confident that more than 200 million masks will be delivered to the state "at a monthly basis starting in the next few weeks."
  5. Business latest: America's food heroes in times of the coronavirus crisis. Even when the economy comes back to life, huge questions for airlines will remain.
  6. World updates: China reopens Wuhan after 10-week coronavirus lockdown.
  7. 2020 latest: Polls for Wisconsin's primary elections closed at 9 p.m. ET Tuesday, but results won't be released until April 13. Thousands of residents cast ballots in person.
  8. 1 Olympics thing: About 6,500 athletes who qualified for the Tokyo Games will keep their spots in 2021.
  9. What should I do? Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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