Treasury Market Summary
Treasury Market Summary: Risk aversion dominated the markets as trade war fears escalated. China announced its own increase in tariffs on U.S. goods in retaliation to the U.S. actions on Friday. Wall Street plunged, with the Dow dropping more than 700 points to a low of 25,222 before bouncing modestly. The S&P 500 tested 2,800. Treasury yields dropped sharply, with the belly of the curve seeing rates drop over 9 bps to 2.16%, the lowest since late March. The 10-year fell over 7 bps to 2.387%, while the 2-year was off over 8 bps to 2.17%. Late in the day, President Trump indicated he would be meeting with President's Xi and Putin at next month's G20 in Japan, and that he's yet to decide whether or not he will go ahead with the 25% tariff on an additional $325 B in Chinese goods. That saw Wall Street pare some losses. The calendar was light with just some Fedspeak from VC Clarida and Kashkari. View the summary.