|10-Year: -5/32....%.... GNMAs: .... USD/JPY: 110.20.... EUR/USD: 1.1310|
-- Optimism surrounding the start of the latest round of trade negotiations between officials from United States and China
-- Dollar Index nears January high
- U.S. Treasuries are on track for a lower start after Treasury futures retreated during the Asian session. Overnight action was subdued due to a holiday closure in Japan, but markets in China reopened after the Lunar New Year with China's Shanghai Composite rising 1.4%. U.S. officials, including Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, are once again visiting Beijing, with trade talks planned for later in the week. This appears to have injected some optimism into capital markets, even though concrete progress on the trade front has been elusive so far. The U.S. Dollar Index has shown continued strength, rising 0.2% to 96.79. This puts the Index on track for its eighth consecutive advance.
- Yield Check:
- 2-yr: +1 bp to 2.47%
- 3-yr: +1 bp to 2.45%
- 5-yr: +2 bps to 2.46%
- 10-yr: +2 bps to 2.65%
- 30-yr: +1 bp to 2.99%
- China Daily reported that China's GDP growth is expected to slow to 6.3% in 2019 from last year's 6.6%.
- Xinhua reported that sales during the Lunar New Year grew 42.7% year-over-year.
- There has been speculation that Spain's Prime Minister Pedro Sanchez could call an early election that would take place on April 14.
- UK's December GDP decreased 0.4% month-over-month (expected 0.0%; last 0.2%). Q4 GDP increased 0.2% quarter-over-quarter (expected 0.3%; last 0.6%) and grew 1.3% year-over-year (expected 1.4%; last 1.6%). December Construction Output decreased 2.8% month-over-month (expected 0.2%; last 0.1%). December Industrial Production fell 0.5% month-over-month (expected 0.1%; last -0.3%) and declined 0.9% year-over-year (expected -0.4%; last -1.3%). December Manufacturing Production fell 0.7% month-over-month (expected 0.2%; last -0.1%) while the year-over-year reading decreased 2.1% (expected -1.1%; last -1.2%).
- WTI Crude: -0.7% to $52.35/bbl
- Gold: -0.7% to $1309.30/ozt
- Copper: -0.7% to $2.79/lb
- EUR/USD: -0.1% to 1.1310
- GBP/USD: -0.3% to 1.2906
- USD/CNH: +0.2% to 6.7960
- USD/JPY: +0.5% to 110.20
- No Data Scheduled for Today
- Fed Speakers:
- Governor (FOMC voter) Michelle Bowman at 11:15 ET