Markets are erring slightly in favour of risk-off flows
- US-China relations: US Senate passes bill in support of Hong Kong protests
- China says the US should stop interfering in Hong Kong and China affairs - threatens retaliation
- Hong Kong gov says the US bill is unnecessary, ungrounded and that foreign govmts should not interfere
It's all about US-China tensions to start the day, as this feeds into the potential for a higher hurdle in getting towards a "Phase One" trade deal.
As such, the likes of the aussie and kiwi are dragged lower with the dollar, yen and franc keeping more steady to start the day.
US futures are down by 0.2% after mixed tones overnight while Treasury yields are also lower across the curve. 10-year yields are down by 3.3 bps to 1.75% at the moment.
As things stand, it's all about trade headlines with little on the economic calendar in Europe to really shift the dial. So, be wary of any further responses to the above matter in the sessions ahead as that will impact the ebb and flow in markets on the week.
