|10-Year: -1/32....%.... GNMAs: .... USD/JPY: 113.53.... EUR/USD: 1.1358|
--President Trump and President Xi agree to suspend further tariff actions for 90 days to allow more time for trade negotiations
--Market recoups early losses; 10-yr yield back below 3.00%
--November ISM Manufacturing Index: Actual 59.3, Briefing.com consensus 57.2, Prior 57.7
--October Construction Spending: Actual -0.1%, Briefing.com consensus +0.3%, Prior revised to -0.1% from 0.0%
- The Treasury market has done an about-face and has recouped overnight losses. In doing so, the yield on the benchmark 10-yr note has moved back below the 3.00% level.
- Stocks have retreated from their best levels as well, reined in by an underlying sense that this morning's positive reaction to the Trump-Xi agreement to suspend further tariff actions for the next 90 days was probably an overreaction since nothing concrete was achieved in terms of resolving the most important structural trade issues between the two countries.
- The early selling in the Treasury market didn't match the level of early enthusiasm in the stock market, highlighting a a more practical awareness in the fixed-income market that an agreement to keep talking is still a long way from an economically-material solution.
- Yield check:
- 2-yr: UNCH at 2.81%
- 5-yr: -1 bp to 2.83%
- 10-yr: -2 bps to 2.99%
- 30-yr: -2 bps to 3.29%