The talks between the US and North Korea came to an abrupt end as President Trump walked away after the two sides couldn’t agree on a deal. President Trump was not pleased with Kim’s offer to dismantle their main nuclear facility without giving up their arsenal and other infrastructure while asking to lift the sanctions in their entirety. The president said “sometimes you have to walk” at a news conference in Hanoi. Although the Trump administration pledged to continue negotiations, the outlook is now murky as it’s unclear how North Korea will react to the president walking away. Treasuriesrallied on the news but took an about-face after the fourth quarter GDP came in above expectation. In the stateside, Fed Chair Powell told the House Financial Services Committee yesterday that he would soon announce a plan to end the currently ongoing balance sheet normalization.
Initial Jobless Claims came back to a normal range as it printed 225k vs. 217k revised prior and 220k consensus. Continuing Claims also came in above expectation at 1805k vs. 1726k revised prior. The fourth quarter GDP came in at 2.60% vs. 2.20% consensus, relieving looming concerns over slowdown in the economy. Personal Consumption was slightly short of estimate of 3.00% at 2.80%. Chicago Purchasing Manager index in February surged to 64.70 from 56.70 prior vs. 57.50 consensus. Lastly, Bloomberg Consumer Comfort continued to show strength at 61.00 vs. 59.60 prior.
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The talks between the US and North Korea came to an abrupt end as President Trump walked away after the two sides couldn’t agree on a deal. President Trump was not pleased with Kim’s offer to dismantle their main nuclear facility without giving up their arsenal and other infrastructure while asking to lift the sanctions in their entirety. The president said “sometimes you have to walk” at a news conference in Hanoi. Although the Trump administration pledged to continue negotiations, the outlook is now murky as it’s unclear how North Korea will react to the president walking away. Treasuries rallied on the news but took an about-face after the fourth quarter GDP came in above expectation. In the stateside, Fed Chair Powell told the House Financial Services Committee yesterday that he would soon announce a plan to end the currently ongoing balance sheet normalization.
Initial Jobless Claims came back to a normal range as it printed 225k vs. 217k revised prior and 220k consensus. Continuing Claims also came in above expectation at 1805k vs. 1726k revised prior. The fourth quarter GDP came in at 2.60% vs. 2.20% consensus, relieving looming concerns over slowdown in the economy. Personal Consumption was slightly short of estimate of 3.00% at 2.80%. Chicago Purchasing Manager index in February surged to 64.70 from 56.70 prior vs. 57.50 consensus. Lastly, Bloomberg Consumer Comfort continued to show strength at 61.00 vs. 59.60 prior.
The curve has bear-flattened with UST 10-Year yield up 2.34 bps.