With this week's losses in global equity markets, we're seeing the yields on long-term bonds fall to record lows. As investors flee equity markets, the price of low-risk assets like long-term US and Canada bonds gets pushed upwards, and yields correspondingly fall.

Yesterday, the Dow Jones Industrial Average (DJIA) closed down 1,031 points, its largest drop since February 2018. This drop, which erased all of the Dow's 2020 gains, can be attributed to a few factors: Heavy overnight losses in Europe and Asia, Bernie Sanders' strong win in Nevada, which established him as the front-runner for the Democratic nomination, Outbreaks of novel coronavirus (COVID-19) in Iran, Italy, and South Korea

An outbreak of Coronavirus in Wuhan, the capital of China's Hubei province, has dominated headlines. Currently, the Public Health Agency of Canada, the WHO, and the CDC are advising travelers to exercise enhanced caution while travelling to or from China. A global alert has not yet been issued.

This morning, the Bank of Canada (BoC) held the overnight target rate at 1.75%. In the Bank's press release, however, there were suggestions that a rate cut could be in the cards if growth continues to fall short of projections.