Treasury prices ticked higher Wednesday, pushing yields lower, for a fourth day in a row, as lingering trade jitters unsettled investors with the possibility that a trade deal may not arrive soon.
What are Treasurys doing?
The 10-year Treasury note yield
TMUBMUSD10Y, -1.02%
fell 2.1 basis points to 2.427%, around its lowest levels in five weeks. The 2-year note yield
TMUBMUSD02Y, -1.24%
fell 2.4 basis points to 2.254%. The 30-year bond yield
TMUBMUSD30Y, -0.56%
was down 2.1 basis points to 2.841%. Bond prices move in the opposite direction of yields.
See: Here’s how trade uncertainty could send the 10-year Treasury yield plunging below 2.40%
What’s driving the market?
Reuters reported China had tried to backtrack from previous negotiations last Friday, days before President Donald Trump tweeted his vow to hike tariffs on $200 billion of Chinese imports to 25% on Friday from the current 10%.
Investors were also surprised by a sudden drop in Chinese exports in April, which fell 2.7% year-over-year, after it gained 14.2% in March. Economists are closely monitoring the good shipments out of the second largest economy in the world, as they represent the key transmission mechanism between China’s performance and global growth.
China’s CSI 300 index
000300, -1.43%
lost 1.4% on Wednesday, while futures for the S&P
ESM9, -0.43%
and Dow
YMM9, -0.37%
showed U.S. equities were poised to fall at the opening bell.
See: Stock-market strategist says Wall Street should shake off Trump trade anxieties and ‘buy this dip’
What else is on investors’ radar?
Investors will tackle some fresh speeches from the Federal Reserve, after several central bankers played down the decline in core inflation this year. Fed Gov. Lael Brainard is set to speak at 8:30 a.m. Eastern time.
The Treasury Department will sell $27 billion of 10-year notes later at 1 p.m. Eastern time. Debt sales can influence the direction of trading in the outstanding market.
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Source : MTV
