While it was reported yesterday that a meeting between President Trump and Chinese President Xi would not happen until April at the earliest, President Trump said that the US would know about a possible deal with China in three to four weeks. US equity index futures rose slightly on the news. In overseas, China will not resort to quantitative easing to combat its economic slowdown but rather cut value-added taxes to support the economy. In the UK, Prime Minister May finally won when a majority of Parliament endorsed her bid to delay Brexit. The EU is open to a delay until late May but will require Britain to give a clear reason for pushing back the deadline. Treasuries sharply advanced this morning on weak economic data with WTI crude tumbling below $58 a barrel.
Empire Manufacturing unexpected fell to 3.70 in March from 8.80 prior vs. 10.00 consensus, marking the lowest reading since May 2017. Industrial Production in February also came in lower than consensus of 0.40% at 0.10% though it increased 0.50% from -0.40% revised prior. Capacity Utilization in February declined to 78.20% from 78.30% revised prior vs. 78.50% consensus. JOLTS Job Openings in January sharply increased to 7581 from 7479 revised prior vs. 7225 consensus. Lastly, University of Michigan Sentiment also printed a strong reading at 97.80 vs. 93.80 prior and 95.60 consensus.
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While it was reported yesterday that a meeting between President Trump and Chinese President Xi would not happen until April at the earliest, President Trump said that the US would know about a possible deal with China in three to four weeks. US equity index futures rose slightly on the news. In overseas, China will not resort to quantitative easing to combat its economic slowdown but rather cut value-added taxes to support the economy. In the UK, Prime Minister May finally won when a majority of Parliament endorsed her bid to delay Brexit. The EU is open to a delay until late May but will require Britain to give a clear reason for pushing back the deadline. Treasuries sharply advanced this morning on weak economic data with WTI crude tumbling below $58 a barrel.
Empire Manufacturing unexpected fell to 3.70 in March from 8.80 prior vs. 10.00 consensus, marking the lowest reading since May 2017. Industrial Production in February also came in lower than consensus of 0.40% at 0.10% though it increased 0.50% from -0.40% revised prior. Capacity Utilization in February declined to 78.20% from 78.30% revised prior vs. 78.50% consensus. JOLTS Job Openings in January sharply increased to 7581 from 7479 revised prior vs. 7225 consensus. Lastly, University of Michigan Sentiment also printed a strong reading at 97.80 vs. 93.80 prior and 95.60 consensus.
The curve has bull-flattened with UST 10-Year yield down 4.50 bps.