Treasury yields climb higher as European equities, US futures pare almost all of their earlier losses today
Bond yields are at their highs for the session while we're seeing European stocks also erase earlier losses, with the DAX only down by 0.1% now. US futures also turned higher briefly before hovering around more flat territory at the moment.
The push came after China is reported to have extended an invite to US trade negotiators for another round of face-to-face talks last week.
However, it is also said that the US camp is unsure of accepting the invite if China is not willing to make firm commitments on the current outstanding issues.
I would argue that there are two ways to read into the report there. The first of which is that if both sides are willing to meet up to try and resolve the current differences, there is hope that we may see a "Phase One" deal come about by the end of the year.
The second line of thought is that there really is a major sticking point in negotiations right now and the only way to potentially resolve it is via another round of face-to-face talks. But if that fails, there is a strong chance that this whole deal could blow up in a big way.
If you look at the balance of risks on both sides of the argument above, it is clear that risks are skewed towards the latter scenario because markets are in no way pricing in strong odds of that happening whatsoever.
Just something to be wary about as we continue to wait on more official communication ahead of the weekend.
