Treasury yields fall from highs earlier in the session
Trade optimism is the name of the game as we begin the week and although equities are faring well so far, are bond traders already having second thoughts about what a US-China trade truce means in the grand scheme of things?
Looking at Treasury yields, we can see that 10-year yields had earlier been up by 4 bps to a high of 2.046% but has since fallen by nearly 3 bps to 2.017% currently - it touched a low of 2.013% earlier though.
I want to chalk this up to the softer global manufacturing PMI data we have seen today (I'll try to put a post up on that later) but it does highlight some doubts over the optimism and positive vibes we have seen since Asia Pacific trading.
As mentioned since the weekend, a trade truce is a good headline for markets and traders to milk out gains but unless it is followed up by more positive developments, we're no closer to a trade deal or major relief for the global economy.
The slightly more sluggish yields performance on the session has seen USD/JPY fall off from a high of 108.53 to 108.27 currently.
