CNBC: Treasury yields climb as US-China trade talks conclude

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U.S. government debt prices fell on Wednesday as trade talks between the U.S. and China came to an end.

The yield on the benchmark 10-year Treasury note climbed to 2.726 percent while the yield on the 30-year Treasury bond rose to about 3.008 percent. Bond yields move inversely to prices.

Washington and Beijing concluded their negotiations over trade, the Chinese foreign ministry said on Wednesday. The two countries have been engaged in a tense trade battle that has seen billions of dollars’ worth of imports targeted with tariffs on either side.

Investors are waiting with bated breath for any signs of a potential trade deal between the two nations. No details of the result of the talks have been announced yet, but U.S. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney said earlier in the day that he thought the discussions “went just fine.”




Stocks were also seen higher Wednesday on the back of the talks. Investors had fled to fixed income assets in previous weeks for safety as equity markets plunged amid fears of a potential slowdown in global economic growth.

Political developments will also likely be another area of focus for investors Wednesday, as the U.S. government shutdown showed no signs of letting up. President Donald Trump delivered a prime-time television address on Tuesday night, where he made his case for a border wall separating the U.S. and Mexico, a key sticking point inhibiting progress toward a funding deal to re-open the government.

It is a quiet day in terms of economic data, with MBA mortgage applications due at 7 a.m. ET. In auction news, $24 billion in 10-year Treasury notes will be auctioned on Wednesday.


Traders will likely monitor speeches from several Federal Reserve policymakers: Atlanta Fed President Raphael Bostic speaks at an event in Chattanooga, Tennessee, at 8:20 a.m. ET; Chicago Fed President Charles Evans is speaking at an event in Riverwoods, Illinois, at 9 a.m. ET; and Boston Fed President Eric Rosengren will provide an economic outlook at an event in Boston, Massachusetts, at 11:30 a.m. ET.

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Fed Chairman Jerome Powell assuaged investor concerns last week, pledging during a panel discussion that the U.S. central bank “will be patient” with monetary policy. Investors, increasingly on edge over the possibility of a global slowdown, had feared the institution may be hiking interest rates too fervently. The Fed hiked rates four times last year, and expectations have tempered as to how many times it may raise its benchmark rate this year.






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Source: cnbc.com

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