Treasury Yields Increase: US-China Closer to Finalizing Trade Agreement
Market opened today’s session with treasuries lower across all maturities. The 10-YearTreasury yield is currently at 1.8508, 5.65 bps increased from prior closing of 1.7943.
The S&P 500 hit a record high this morning, breaking its all-time high it set over the summer, due to strong earnings and progress on US-China trade negotiations. Of the 202 S&P 500 companies that have reported, 78.00% have exceeded expectations. The Dow Jones gained 143 points (0.50%). The Nasdaq Composite climbed 0.60%. Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement. Technology and financials are the best performing sectors month to date, they are up 3.00% and 2.20%, respectively. Microsoft gained 2.60% after securing a $10 billion defense contract. The Federal Reserve is scheduled to meet again on Wednesday to discuss the possibility of lowering interest rates again. US economic growth is forecast to have sowed to 1.60% in the third quarter; GDP data will be released Wednesday. The Euro climbed 0.20% to $1.1101; the British pound was little changed to 86.389 Pence per Euro, while the Japanese Yen was little changed at 108.72 per Dollar. The yield on 10-YearTreasuries advanced four basis points to 1.83%. The yield on 2-YearTreasuries advanced three basis points to 1.65%. Britain’s 10-Year yield decreased one basis point to 0.673%. The US Treasury will auction $45 billion in three-month bills, and $42 billion in six-month bills.
Virgin Galactic becomes the world’s first and only publicly traded commercial human spaceflight company. Virgin Galactic’s spacecraft will be able to carry 6 passengers and 2 pilots to the edge of space. The spaceship is dropped from a jet-powered aircraft and fires a rocket motor, reaching over three times the speed of sound. The spacecraft and its passengers will then float weightless for a few minutes, before gliding back down to land on Earth. On Sunday, the White House announced that the leader of ISIS, Abu Bakr al-Baghdadi, died in an overnight US military operation in Syria. Baghdadi was arrested by occupying American forces in 2004 and was detained at the Abu Ghraib prison before joining Al-Qaeda in Iraq. He has led ISIS since 2010 and was last seen alive in a video in April 2019. The ISIS leader was targeted near Barisha, Syria. American forces used eight helicopters through airspace controlled by Russia and Turkey. No Americans were killed in the raid, but Trump said one of the military dogs was injured.
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The S&P 500 hit a record high this morning, breaking its all-time high it set over the summer, due to strong earnings and progress on US-China trade negotiations. Of the 202 S&P 500 companies that have reported, 78.00% have exceeded expectations. The Dow Jones gained 143 points (0.50%). The Nasdaq Composite climbed 0.60%. Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement. Technology and financials are the best performing sectors month to date, they are up 3.00% and 2.20%, respectively. Microsoft gained 2.60% after securing a $10 billion defense contract. The Federal Reserve is scheduled to meet again on Wednesday to discuss the possibility of lowering interest rates again. US economic growth is forecast to have sowed to 1.60% in the third quarter; GDP data will be released Wednesday. The Euro climbed 0.20% to $1.1101; the British pound was little changed to 86.389 Pence per Euro, while the Japanese Yen was little changed at 108.72 per Dollar. The yield on 10-Year Treasuries advanced four basis points to 1.83%. The yield on 2-Year Treasuries advanced three basis points to 1.65%. Britain’s 10-Year yield decreased one basis point to 0.673%. The US Treasury will auction $45 billion in three-month bills, and $42 billion in six-month bills.
Virgin Galactic becomes the world’s first and only publicly traded commercial human spaceflight company. Virgin Galactic’s spacecraft will be able to carry 6 passengers and 2 pilots to the edge of space. The spaceship is dropped from a jet-powered aircraft and fires a rocket motor, reaching over three times the speed of sound. The spacecraft and its passengers will then float weightless for a few minutes, before gliding back down to land on Earth. On Sunday, the White House announced that the leader of ISIS, Abu Bakr al-Baghdadi, died in an overnight US military operation in Syria. Baghdadi was arrested by occupying American forces in 2004 and was detained at the Abu Ghraib prison before joining Al-Qaeda in Iraq. He has led ISIS since 2010 and was last seen alive in a video in April 2019. The ISIS leader was targeted near Barisha, Syria. American forces used eight helicopters through airspace controlled by Russia and Turkey. No Americans were killed in the raid, but Trump said one of the military dogs was injured.
The curve has bear-steepened with the UST 10-Year yield up 5.65 bps from prior closing.