Bond Market Update

A Call to Order

• Treasury yields have relinquished early gains in the wake of reports discussing the context of the call between President Trump and President Xi. There could possibly be some unwinding of safety trades, given that the tone of the call seems to have been more conciliatory than combative.
• The main takeaway is that their respective team members will soon hold another meeting (the location has yet to be determined). 
• Stocks have advanced following the news, with the S&P 500 on the doorstep of the 6,000 level.
• Yield check:
  • 2-yr: +3 bps to 3.91%
  • 3-yr: +4 bps to 3.88%
  • 5-yr: +5 bps to 3.98%
  • 10-yr: +3 bps to 4.39%
  • 30-yr: unch at 4.89%