Treasuries are modestly lower across the curve this morning from yesterday's close. The UST10-Year yield is currently at 2.973% after closing at 2.932% prior.
Treasuries fell overnight despite trade tensions escalating further between the U.S. and China on headlines that China will request the World Trade Organization for authorization to retaliate against the U.S. for trade violations. The claim against the U.S. is for failing to modify their anti-dumping methodology from a ruling last year. U.S. Stocks slipped with U.S. equity futures as the relationship gap between U.S. and China continue to widen. President Trump has also stated that the administration is ready to impose tariffs on more Chinese goods, although a formal announcement has yet to be released. The latest development on this trade war is overshadowing optimism for a trade deal between the European Union and the U.S.
On the economic calendar, we received the August NFIB Small Business Optimism which edged higher than expected to a new record high after rising to 108.80 versus 108.00 per consensus; its previous mark remained unchanged at 107.90. Elsewhere, the JOLTS Job Openings rose to a record in July to 6.939 Million from an upwardly revised 6.822 Million prior. We also received the final print of the July Wholesale Inventories which rose 0.60% after showing a 0.70% increase prior; consensus called for a 0.70% increase MoM. Lastly, the Wholesale Trade Sales was unchanged in July at 0.00% following a revised 0.20% drop prior. Later today at 10:00 AM (PT), U.S. will auction $35 Billion 3-Year Notes.
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Treasuries fell overnight despite trade tensions escalating further between the U.S. and China on headlines that China will request the World Trade Organization for authorization to retaliate against the U.S. for trade violations. The claim against the U.S. is for failing to modify their anti-dumping methodology from a ruling last year. U.S. Stocks slipped with U.S. equity futures as the relationship gap between U.S. and China continue to widen. President Trump has also stated that the administration is ready to impose tariffs on more Chinese goods, although a formal announcement has yet to be released. The latest development on this trade war is overshadowing optimism for a trade deal between the European Union and the U.S.
On the economic calendar, we received the August NFIB Small Business Optimism which edged higher than expected to a new record high after rising to 108.80 versus 108.00 per consensus; its previous mark remained unchanged at 107.90. Elsewhere, the JOLTS Job Openings rose to a record in July to 6.939 Million from an upwardly revised 6.822 Million prior. We also received the final print of the July Wholesale Inventories which rose 0.60% after showing a 0.70% increase prior; consensus called for a 0.70% increase MoM. Lastly, the Wholesale Trade Sales was unchanged in July at 0.00% following a revised 0.20% drop prior. Later today at 10:00 AM (PT), U.S. will auction $35 Billion 3-Year Notes.
The curve has bear-steepened with the UST 10-Year yield up 4.1 bps from prior closing.