US stocks joined a global rally in equities after President Trump announced Sunday that proposed tariffs on imports from Mexico would be suspended indefinitely, easing some of the trade concerns. President Trump twitted that he has “full confidence” in Mexico’s tougher immigration enforcement. Treasuries slumped and the offshore yuan fell to its weakest level since November. As President Trump and his Chinese counterpart Xi are scheduled to meet at the G-20 summit later this month, Trump said today that if Xi skips the meeting, more tariffs on Chinese imports will become effective immediately. His latest threat was to impose more tariffs on another $300 billion in Chinese goods if they can’t reach an agreement soon. With growing trade tensions between the two countries, Chinese imports tumbled in May while exports unexpectedly increased which many perceived as weakness in domestic economy and signs that manufacturers are frontloading shipments before more tariffs become live. Elsewhere, WTI crude rallied above $54 a barrel this morning. JOLTS Job Openings in April printed 7449 vs. 7496 consensus, following a downwardly revised prior of 7474. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
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US stocks joined a global rally in equities after President Trump announced Sunday that proposed tariffs on imports from Mexico would be suspended indefinitely, easing some of the trade concerns. President Trump twitted that he has “full confidence” in Mexico’s tougher immigration enforcement. Treasuries slumped and the offshore yuan fell to its weakest level since November. As President Trump and his Chinese counterpart Xi are scheduled to meet at the G-20 summit later this month, Trump said today that if Xi skips the meeting, more tariffs on Chinese imports will become effective immediately. His latest threat was to impose more tariffs on another $300 billion in Chinese goods if they can’t reach an agreement soon. With growing trade tensions between the two countries, Chinese imports tumbled in May while exports unexpectedly increased which many perceived as weakness in domestic economy and signs that manufacturers are frontloading shipments before more tariffs become live. Elsewhere, WTI crude rallied above $54 a barrel this morning. JOLTS Job Openings in April printed 7449 vs. 7496 consensus, following a downwardly revised prior of 7474. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
The curve has bear-steepened with UST 10-Year yield up 5.01 bps.