Treasury Yields Slightly Rise on US-China Trade Truce
Market opened today’s session with treasuries inching lower across all maturities. 10-YearTreasury yield is at 2.0119, 0.68 bp increased from prior closing of 2.0051.
US stocks surged with the S&P 500 reaching an all-time high as investors welcomed a temporary truce between the US and China. President Trump agreed to hold off imposing additional tariffs on $300 billion of Chinese goods and announced that he would ease a ban on Huawei, allowing American companies supplying to China’s largest tech company. Semiconductor shares including Skyworks Solutions, Micron Technology, and Qualcomm rose broadly on the news. While attending the final day of the G-20 summit in Japan, President Trump tweeted an invitation for North Korea’s Kim to meet for a handshake and eventually made himself the first sitting US President to enter the hermit nation. Elsewhere, WTI crude rallied toward $60 a barrel this morning after OPEC and its allies agreed to extend output cuts by nine months.
Markit US Manufacturing PMI in June slightly rose to 50.60 from 50.10 prior vs. 50.10 consensus. ISM Manufacturing printed 51.70 above consensus of 51.00, following a prior of 52.10, and ISM Prices Paid dropped to 47.90 from 53.20 in prior month while consensus called for 53.00. Lastly, Construction Spending in May declined to -0.80% from an upwardly revised prior of 0.40%. 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 surged with the S&P 500 reaching an all-time high as investors welcomed a temporary truce between the US and China. President Trump agreed to hold off imposing additional tariffs on $300 billion of Chinese goods and announced that he would ease a ban on Huawei, allowing American companies supplying to China’s largest tech company. Semiconductor shares including Skyworks Solutions, Micron Technology, and Qualcomm rose broadly on the news. While attending the final day of the G-20 summit in Japan, President Trump tweeted an invitation for North Korea’s Kim to meet for a handshake and eventually made himself the first sitting US President to enter the hermit nation. Elsewhere, WTI crude rallied toward $60 a barrel this morning after OPEC and its allies agreed to extend output cuts by nine months.
Markit US Manufacturing PMI in June slightly rose to 50.60 from 50.10 prior vs. 50.10 consensus. ISM Manufacturing printed 51.70 above consensus of 51.00, following a prior of 52.10, and ISM Prices Paid dropped to 47.90 from 53.20 in prior month while consensus called for 53.00. Lastly, Construction Spending in May declined to -0.80% from an upwardly revised prior of 0.40%. 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-flattened with UST 10-Year yield up 0.68 bp.