The preponderance of economic data suggests that the economy is in a recession and given the risks that the FOMC has outlined that suggests that rates will go lower faster and stay there longer than any one would have thought just a few weeks ago. The equity market is having a late epiphany and is finally aware that all other asset classes are in the midst of a risk aversion upheaval and they are in the process of recognizing that the prospects for profit growth in the near term are constrained by economic reality.
Corporate bond spreads are about 10 basis points wider with very little trading. One dealer reported that he had seen energy paper in for the bid but the bids were of the underwriting variety. The new Citibank which came to market amidst much fanfare early in the week at T+230 is 250/245. And so it goes.