A common chain of events in a recession is, therefore, for the price of equities to fall and the price of Treasuries to rise. When the price you pay for a Treasury rises, their yields—the annual interest coupon payment divided by the price you paid to own the bond—fall. And in response to the first impact of the virus, in February 2020, that is what had happened. Shares fell. Bond prices rose and yields came down. Falling yields lower interest rates, make it easier for firms to borrow, and should in due course stimulate new investment.
