The U.S. Treasury yields ease in the market today after surging to a whopping 7-year high last week. This week, the figures ease as investors anticipate for the next move that the Federal Reserve will make.
The Federal Reserve is expected to release its monthly meeting this coming Wednesday. The Fed’s minutes are expected to be released after the meeting and mixed reactions and forecasts are expected after some debacle that happened this month.
Furthermore, yesterday’s Treasury figures reported volatile performance as the United States and China trade wars surfaces. The trade wars rumors have been mildly dispelled as both countries released an agreement apprehending the looming possibility of a trade war.
Trade Wars Negotiations
Both countries managed to come to an agreement that will eventually halt the ongoing tariffs that both countries recently announced. According to reports, the “Framework” deal is expected to give a huge increase on Beijing’s purchasing powers of U.S. goods and services.
United States Treasury Secretary Steve Mnuchin noted that "We are putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we try to execute the framework,”
On the other hand, the new Italy coalition government continues to grow. The market is growing more concerns on the new and growing coalitions, pushing some of the Treasury on the bleaker side. Italy’s bond yield managed to strike a great run as two anti-establishment parties continue to bridge the gap to power.
Treasury Yields Performance
The 10-year Treasury note yield has increased by a slight margin, offsetting some of the immense rallies they experienced last week. It managed to move inches higher yesterday at 3.065%, and still inches away from the seven-year trading high which was achieved last Friday at 3.125%. L
Last week’s 10-year Treasury note managed to strike its best performance since April 20, climbing to the 7-year high on the great economic news.
On the other hand, the 2-year note yield also managed to rise despite the geopolitical turmoil in the market. It managed to increase by 2 basis points to 2.570%. The 30-year bond took a curveball sinks in the market at 3.205%.
It was one of the best performers last week after tallying a massive run over the previous sessions. It managed to strike a whopping 9.8 basis points increase over the same time period, and it was also its biggest market movement since last month.
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