Covid Variant Causes Massive Market Reaction

This morning it was B.1.1.529.  By the afternoon, the WHO labeled it the Omicron variant.  The market immediately took a "guilty until proven innocent" approach.  Bonds surged significantly and stocks swooned.  Holiday-light trading conditions greased the skids to some extent, but even on a normal trading day, this was big news.  It will likely continue to be treated as such for a few weeks at the very least.

Econ Data / Events
Market Movement Recap
09:41 AM

Massive rally overnight on new covid variant.  10yr down 12bps at 1.524 and 2.5 UMBS up more than half a point.

11:22 AM

Additional gradual gains as short sellers from earlier in the week are forced to cover.  10yr down 15.6bps at 1.487 and 2.5 UMBS up more than 5/8ths.

02:45 PM

Buyers stayed on the prowl all day with MBS and Treasuries both hitting the early 2pm close at their best levels.  10yr down more than 16bps at 1.477 and 2.5 UMBS up more than 3/4ths of a point.