Bond Market Update

Pushing Higher

• U.S. Treasuries are on track for a higher start after two days of selling to end last week. Treasury futures began inching higher last evening, continuing their upward push through the night. The market received just a limited set of economic data, leaving the overall focus on geopolitics after Friday's meeting between President Trump and Russia's President Putin. The meeting in Alaska did not produce any immediate breakthroughs, but the effort to end the war in Ukraine will continue today, as Ukraine's president and several European leaders are schedule to meet with President Trump this afternoon. Crude oil holds a modest gain while the U.S. Dollar Index is up 0.1% at 97.95.
• Yield Check:
  • 2-yr: -2 bps to 3.74%
  • 3-yr: -2 bps to 3.70%
  • 5-yr: -3 bps to 3.82%
  • 10-yr: -4 bps to 4.29%
  • 30-yr: -4 bps to 4.89%

• News:
  • Japan's Financial Services Agency is expected to approve yen-denominated stablecoins this month.
  • There has been speculation about a potential corporate tax hike in Japan. 
  • South Korea may reduce its workweek to 4.5 days.
  • Japan's June Tertiary Industry Activity Index rose to 4.50 from -1.40.
  • Singapore's July non-oil exports were down 6.0% m/m (last 14.2%), falling 4.6% yr/yr (last 12.9%).
  • New Zealand's July Performance of Services Index hit 48.9 (last 47.6).
  • Eurozone's June trade surplus reached EUR7.0 bln (expected surplus of EUR18.1 bln; last surplus of EUR16.5 bln).
  • U.K.'s August Rightmove House Price Index was down 1.3% m/m (last -1.2%) but up 0.3% yr/yr (last 0.1%).
  • Spain's June trade deficit reached EUR3.59 bln (last deficit of EUR2.54 bln).
  • Swiss Q2 Industrial Production was down 0.1% yr/yr (last 8.9%).
• Commodities:
  • WTI Crude: +0.7% to $63.21/bbl
  • Gold: +0.3% to $3393.20/ozt
  • Copper: -0.6% to $4.468/lb
• Currencies: 
  • EUR/USD: -0.2% to 1.1685
  • GBP/USD: -0.1% to 1.3543
  • USD/CNH: UNCH at 7.1819
  • USD/JPY: +0.2% to 147.47
• Data out Today:
  • 10:00 ET: August NAHB Housing Market Index (Briefing.com consensus 34; prior 33)
  • U.S. Net Long-Term TIC flows reached $150.8 bln in June after hitting $266.80 bln in May (reported on Friday evening)