Bond Market Update

Upbeat Start

• U.S. Treasuries have started the week on an upbeat note that has sent yields lower across the curve. The impetus for the gains are lower oil prices and some hopeful views about the Trump-Xi meeting later this week (Sept. 24) after Treasury Secretary Bessent labeled his pre-summit meeting with Vice Premier He Lifeng as "successful," with overtures for working together on AI incidents and improving trade negotiations. WTI crude futures are down 2.7% to $97.57/bbl, and Brent crude futures are down 2.8% to $100.94/bbl, helping to drive a synchronized rally in sovereign bond markets.
• Yield Check:
  • 2-yr: -3 bps to 4.71%
  • 3-yr: -5 bps to 4.78%
  • 5-yr: -5 bps to 4.81%
  • 10-yr: -5 bps to 4.95%
  • 30-yr: -4 bps to 5.29%

• News:
  • The U.S., Denmark, and Greenland have worked out an agreement whereby the U.S. can develop a significant military presence in Greenland and block others from doing the same.
  • President Trump threatens an attack on Iran but says he is open to meeting Iran's president at this week's United Nations General Assembly. CNBC
  • President Trump to meet with Ukraine President Volodymyr Zelensky in New York on Tuesday, according to Axios
  • President Trump will be announcing, in the near future, the AI 'Czar.' Truth Social
  • Treasury Secretary Bessent labeled his meeting with Chinese Vice Premier He Lifeng as "successful" ahead of the September 24 Trump-Xi meeting. CNBC
  • Minneapolis Fed President Kashkari (FOMC voter) says inflation is in "all aspects of the economy." Bloomberg
  • Houthis launched a weekend attack on Riyadh. Reuters
  • Saudi Arabia managed to export nearly 3.0 million barrels of oil per day the last six days via the Strait of Hormuz. Oilprice.com
  • CNN, MSNOW and Politico to sue over White House access. CNN
• Commodities:
  • WTI crude: -2.6% to $97.69/bbl
  • Gold: -0.6% to $4398.80/ozt
  • Copper: +1.8% to $6.81/lb
• Currencies:
  • EUR/USD: flat at 1.1487
  • GBP/USD: flat at 1.3394
  • USD/CNH: flat at 6.6928
  • USD/JPY: +0.2% to 157.19
• Today's economic data:
  • There is no U.S. economic data of note