Bonds Aren't Buying The "Light At The End Of The Tunnel" Narrative Tyler Durden Tue, 11/17/2020 - 08:45 By Richard Jones, macro commentator at Bloomberg The shallow and fleeting spike in U.S. and German yields yesterday shows that these haven bond markets are more concerned about near-term pandemic challenges than the putative economic boost from a potential vaccine. Both markets reacted much less acutely to the Moderna news than the Pfizer announcement last week. One interpretation of yesterday’s price action could be that the Moderna announcement only provided an incremental advance on the Pfizer news, and was therefore not a game-changer for fixed income investors. It could be argued that there was already a lot of good news priced into bonds. It’s not just these haven bonds that are showing tepid enthusiasm at the latest vaccine advance. The e-mini S&P 500 futures are trading back near levels seen before the Moderna announcement yesterday. With the U.S. now locking down from coast-to-coast, it is easy to see why near-term pandemic challenges are sparring with longer-term immunization hopes. Angela Merkel is also calling on people to limit public and private gatherings, ahead of additional meetings next week with German state leaders to discuss a plan for the coming months. Stocks have shown glimpses of longer-term optimism, but the short-term challenges imposed by the virus mean that bonds will need a lot more convincing.