Treasury Market Summary
Treasury Market Summary: Treasuries held modest gains to start the week, unwinding Friday's selloff on the NY Fed's walk back, albeit in a low volume trade. Support continued to come from expectations for central bank accommodation. Treasuries are priced for a 25 bp easing at the July 30, 31 FOMC. The market trimmed the potential for a more aggressive 50 bp cut after the NY Fed corrected that view. However, dovish guidance is still expected from the Fed chair to suggest more cuts are likely later in the year. That view also supported Wall Street, with the NASDAQ Wall Street is fractionally higher with the Nasdaq outperforming on a rally in tech shares, and amid hope for a meeting between U.S. and Chinese trade negotiators next week. The day's only data was the Chicago Fed's National Activity index. View the summary.