by Adam Button
The world’s ninth-largest country is poised to slow to a standstill after another jump in cases led to a mass lockdown and a red flag in the bond market. The yen was the top performer Monday while the lagged. US stocks suffered their worst day since 2008 and oil their worst day since 1991.

Gold Oil Mar 9 2020
If Italy is a preview of what’s to come for the rest of the developed world then the situation is dire. The country restricted movement throughout the country closed all schools until April 3 and banned public gatherings. Travel is still allowed for work.
The government is preparing to raise its deficit target to 2.8% of from 2.2% but that’s a fantasy. GDP will be in freefall in March and until the virus is contained and tax revenues will plunge. While bond yields globally were cratering on Monday, rose 35 basis points. The ultimate level of 1.42% is still ultra-low but it’s a warning that the market won’t tolerate…