Treasury Action: there was no response in the markets to the -$120 B budget deficit
Treasury Action: there was no response in the markets to the -$120 B budget deficit for July. Yields remain sharply richer with a near 12 bp drop in the 30-year which is testing the record low of 2.099%. The 30-year is 12 bps lower at 2.13% on flight to safety trades. Wall Street is just off the lows of the session with the Dow and S&P 500 now over 1% lower. Along with trade concerns, disappointing earnings are exacerbating the slide in stocks. Overseas markets are adding to the increasingly glum investor sentiment, with the turmoil in Hong Kong, rising risk of a no-deal Brexit, instability in Italy's government, with Argentina added to the list today after the surprise election results Sunday where pro-business President Macri was defeated in primary elections, setting the stage for a populist victory in October's elections.