Market opened today’s session with treasuries nudging lower across all maturities. 10-YearTreasury yield is at 1.4741, 1.68 bps increased from prior closing of 1.4573.
Earlier Tuesday, Trump suggested he could take even more drastic action to “crack down” on China’s trade practices without a new trade agreement in place, if he wins the reelection next year. The trade war has contributed to investor concerns about a global economic slowdown, however, concern over the falling yields and the trade dispute seemed to have temporarily disappeared. The Dow Jones traded 226 points higher, putting the Dow on track for its strongest weekly gain in 10 weeks; the Dow, S&P 500, and Nasdaq are all on pace to break a string of four consecutive losing weeks. Negotiators from the US and China are supposed to be meeting in September, although they have not set a specific date. Traders rushed back into riskier assets as global event risks seemed to recede which caused gold to decrease 0.60% to $1,538.69 an ounce and West Texas Intermediate crude oil to advance 2.40% to $55.21 a barrel. The yield on 10-YearTreasuries increased 4 basis points to 1.50%, while the yield on 2-YearTreasuries climbed 2 basis points to 1.47%. The US Treasury will offer $40 billion and $55 billion at its weekly auction of 8-week and 4-week bills, respectively.
Reports show the trade deficit narrowed to $54.00 billion in July from $55.50 billion in the prior month. However, imports growth is likely to surge as companies stockpile goods before the holiday season while exports are weakened in the remainder of the quarter, which will widen the trade deficit. Growth in both exports and imports decelerated a considerable amount since last year; exports growth peaked at 11.00% in May 2018 and imports growth peaked at 10.00% in September. Although there was a 2.60% decline in capital goods imports, consumer goods imports increased 1.10%, which indicated strength, if not growth, in consumer spending. Data from a US Commerce Department report, reviewing international travel and tourism to the US, showed visitors spent $17.68 billion in July compared to $17.75 billion a year earlier. The report also revealed that tourists from the US spent $12.53 billion abroad in July compared to the prior year’s $11.90 billion.
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Earlier Tuesday, Trump suggested he could take even more drastic action to “crack down” on China’s trade practices without a new trade agreement in place, if he wins the reelection next year. The trade war has contributed to investor concerns about a global economic slowdown, however, concern over the falling yields and the trade dispute seemed to have temporarily disappeared. The Dow Jones traded 226 points higher, putting the Dow on track for its strongest weekly gain in 10 weeks; the Dow, S&P 500, and Nasdaq are all on pace to break a string of four consecutive losing weeks. Negotiators from the US and China are supposed to be meeting in September, although they have not set a specific date. Traders rushed back into riskier assets as global event risks seemed to recede which caused gold to decrease 0.60% to $1,538.69 an ounce and West Texas Intermediate crude oil to advance 2.40% to $55.21 a barrel. The yield on 10-Year Treasuries increased 4 basis points to 1.50%, while the yield on 2-Year Treasuries climbed 2 basis points to 1.47%. The US Treasury will offer $40 billion and $55 billion at its weekly auction of 8-week and 4-week bills, respectively.
Reports show the trade deficit narrowed to $54.00 billion in July from $55.50 billion in the prior month. However, imports growth is likely to surge as companies stockpile goods before the holiday season while exports are weakened in the remainder of the quarter, which will widen the trade deficit. Growth in both exports and imports decelerated a considerable amount since last year; exports growth peaked at 11.00% in May 2018 and imports growth peaked at 10.00% in September. Although there was a 2.60% decline in capital goods imports, consumer goods imports increased 1.10%, which indicated strength, if not growth, in consumer spending. Data from a US Commerce Department report, reviewing international travel and tourism to the US, showed visitors spent $17.68 billion in July compared to $17.75 billion a year earlier. The report also revealed that tourists from the US spent $12.53 billion abroad in July compared to the prior year’s $11.90 billion.
The curve has bear-steepened with UST 10-Year yield up 1.68 bps.U.S. Federal Reserve ReleasesBeige
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