3rdPartyFeeds News

Bond Report: Treasury yields edge higher on tentative trade optimism

U.S. Treasury yields edged up Thursday, reversing some of this week’s decline, after a report said Beijing was pushing to advance talks on a partial trade deal with the U.S. Read More...

U.S. Treasury yields edged up Thursday, reversing some of this week’s decline, after a report said Beijing was pushing to advance talks on a partial trade deal with the U.S.

What are Treasurys doing?

The 10-year Treasury note yield TMUBMUSD10Y, +0.74%   rose 1.5 basis points to 1.753%, while the 2-year note rate TMUBMUSD02Y, +1.05%   ticked higher by 1.8 basis points to 1.590%. The 30-year bond yield TMUBMUSD30Y, +0.73%   was up 1.3 basis points to 2.216%.

What’s driving Treasurys?

Bond-markets came under pressure after Beijing pushed for a phase one trade deal, inviting U.S. trade negotiators for face to face talks in China, according to the Wall Street Journal.

This comes after a news report on Wednesday suggested the limited trade agreement may have to wait until next year before it is completed.

Analysts say negotiations have stalled over several sticking points, including the level of Chinese agricultural purchases of U.S. farm goods and the extent of tariff rollbacks as part of the deal.

In economic data, the Philadelphia Fed manufacturing index rose to 10.4 in November, from 5.6 in the previous month. Jobless claims was flat at 227,000 for the week ending in Nov. 16. Existing home sales are set for release at 10 a.m.

As for the Federal Reserve, Cleveland Fed President Loretta Mester and Minneapolis Fed President Neel Kashkari will speak later in the day.

What did market participants’ say?

Jon Hill, an interest-rate strategist at BMO Capital Markets, said Thursday’s round of economic data did not have an impact on bond markets as “focus remains on all things trade war related.”

Read More

Add Comment

Click here to post a comment