Market opened today’s session with treasuries nudging lower across all maturities. 10-YearTreasury yield is at 1.6046, 5.08 bps increased from prior closing of 1.5538.
US stock futures rose after President Trump said that the US is “doing very well with China” while signaling a breakthrough is yet to come. Also, the US agreed to extend a temporary reprieve for US companies to trade with Huawei, putting the investor sentiment in a more positive note. Treasuries declined and bank shares rose in premarket along with yields. In China, the central bank announced its plan to reform its interest rate system and cut borrowing costs, mandating new loans to be priced to a revamped benchmark called the Loan Prime Rate, pushing shares in the region up north. The week’s main focus will be Fed Chair Powell’s address at the annual central bankers retreat in Jackson Hole, Wyoming on Friday which will be closely parsed for any hints whether US policy makers will add another rate cut next month. Also, on Wednesday, minutes of the Fed’s July meeting will provide details on the first rate cut in a decade. Elsewhere, WTI crude advanced this morning, trading slightly below $56 a barrel after a drone attack on oil and gas facilities in Saudi Arabia. There is no economic data release but later today, the US Treasury is scheduled to auction off $45 billion of 3-month bills and $42 billion of 6-month bills at 8:30 AM (PT).
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US stock futures rose after President Trump said that the US is “doing very well with China” while signaling a breakthrough is yet to come. Also, the US agreed to extend a temporary reprieve for US companies to trade with Huawei, putting the investor sentiment in a more positive note. Treasuries declined and bank shares rose in premarket along with yields. In China, the central bank announced its plan to reform its interest rate system and cut borrowing costs, mandating new loans to be priced to a revamped benchmark called the Loan Prime Rate, pushing shares in the region up north. The week’s main focus will be Fed Chair Powell’s address at the annual central bankers retreat in Jackson Hole, Wyoming on Friday which will be closely parsed for any hints whether US policy makers will add another rate cut next month. Also, on Wednesday, minutes of the Fed’s July meeting will provide details on the first rate cut in a decade. Elsewhere, WTI crude advanced this morning, trading slightly below $56 a barrel after a drone attack on oil and gas facilities in Saudi Arabia. There is no economic data release but later today, the US Treasury is scheduled to auction off $45 billion of 3-month bills and $42 billion of 6-month bills at 8:30 AM (PT).
The curve has bear-steepened with UST 10-Year yield up 5.08 bps.