BOND REPORT: Treasurys Rally, Yields Retreat, As Trade Tensions Rattle Stocks
17 May 2019 - 1:52PM
Dow Jones News
By Sunny Oh
Treasury prices fell Friday, pushing yields higher, after
Chinese state media suggested a resumption in trade negotiations
may not take place as soon as anticipated.
What are Treasurys doing?
The 10-year Treasury note yield fell 3 basis points to 2.375%,
while the 2-year note yield slipped 3.8 basis points to 2.169%. The
30-year bond yield was down 2 basis points to 2.820%. Bond prices
move in the opposite direction of yields.
What's driving Treasurys?
Commentary by the blog Taoran Notes, associated with the
state-run Economic Daily newspaper, said
(https://www.bloomberg.com/news/articles/2019-05-17/china-not-interested-in-talking-with-u-s-for-now-state-media)
unless the U.S. was sincere, it did not make sense for Chinese
officials to come to Washington to resume trade talks, a sign that
Beijing's window to negotiate a trade deal may have narrowed.
China's Commerce Ministry said it did not know of Treasury
Secretary Steven Mnuchin's planned visit, following his
announcement on Wednesday that he would likely fly to Beijing soon
to continue negotiations,
The escalation of Beijing's rhetoric dampened appetite for
equities and boosted haven assets. Futures for the S&P 500 and
the Dow Jones Industrial Average pointed to a lower open for U.S.
equities. China's CSI 300 index lost 2.5% on Friday, FactSet data
show.
What else is on investors' radar?
Investors will get a look at some second-tier data. The
University of Michigan's consumer sentiment index for May and the
Conference Board's leading economic indicators for April will both
come out at 10 a.m. Eastern.
Key officials from the Federal reserve will also hold several
speeches on Friday. New York Fed President John Williams will meet
the Community League of the Heights in New York City at 11:15 a.m.
Eastern. Later, Fed Vice Chairman Richard Clarida will speak at a
Fed listening session in Philadelphia, Pa., at 1:40 p.m.
(END) Dow Jones Newswires
May 17, 2019 08:37 ET (12:37 GMT)
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