Treasuries are lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.868% after closing at 2.839% prior.
Yesterday President Trump told CNBC that he does not agree with the current Fed policy and stated that he is not thrilled with the current path of rate hikes. He followed up yesterday’s remarks about the Federal Reserves this morning, citing that rising interest rates is undermining America’s competitive edge in terms of currencies against China’s yuan and the EU’s pound. Furthermore, Trump stated that both China and the European Union have been manipulating their currencies and interest rates. The dollar fell with Treasuries in response to the president’s remarks, while U.S. Stocks and equities were mixed on positive earnings reports received this morning.
President Trump also spoke on the ongoing trade war with China, stating that he is ready to go with additional tariffs on about $500 Billion of Chinese goods. In Fed Speak, St. Louis Fed President Bullard spoke this morning on the U.S. economy and monetary policy in which he expressed his view on the risk of yield curve inversion should the Fed continue its current path on raising interest rates. Without any economic reports on today’s calendar, the markets will likely be driven by political headlines.
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Yesterday President Trump told CNBC that he does not agree with the current Fed policy and stated that he is not thrilled with the current path of rate hikes. He followed up yesterday’s remarks about the Federal Reserves this morning, citing that rising interest rates is undermining America’s competitive edge in terms of currencies against China’s yuan and the EU’s pound. Furthermore, Trump stated that both China and the European Union have been manipulating their currencies and interest rates. The dollar fell with Treasuries in response to the president’s remarks, while U.S. Stocks and equities were mixed on positive earnings reports received this morning.
President Trump also spoke on the ongoing trade war with China, stating that he is ready to go with additional tariffs on about $500 Billion of Chinese goods. In Fed Speak, St. Louis Fed President Bullard spoke this morning on the U.S. economy and monetary policy in which he expressed his view on the risk of yield curve inversion should the Fed continue its current path on raising interest rates. Without any economic reports on today’s calendar, the markets will likely be driven by political headlines.
The curve has bear-steepened with the UST 10-Year yield up 2.9 bps from prior closing.
Have A Nice Weekend!