PBoC to launch new policies to counter the impact of coronavirus outbreak

The People's Bank of China (PBoC) announced that it will launch new policies in an appropriate time to counter the impact of the coronavirus outbreak on the economy. The PBoC further added that it will be reducing interest rates on loans to small and micro businesses and reiterated that it will implement a prudent monetary policy flexibly.

Risk aversion

These comments did little to nothing to help the market sentiment improve. As of writing, the 10-year US Treasury bond yield was down 5% on the day and major European equity indexes were all erasing more than 3%.