Treasury Market Summary
Treasury Market Summary: bonds and stocks soared Tuesday, albeit in a whippy trade on dovish central bank outlooks and hopes for a U.S. China trade deal. The initial catalyst were comments from ECB President Draghi who rate cuts and QE expansion were policy options if the outlook did not improve. That boosted expectations the ECB will deliver more stimulus soon. And it comes just ahead of the FOMC decision where the markets anticipate a very a dovish policy statement will set up rate cuts in July. Equities took off higher after tweets from President Trump affirmed he plans to meet with President Xi at the G20 to discuss trade, and Xi said he was willing too, in order to try to resolve differences. Housing starts data was mostly lost in the wash. View the summary.