Treasury Market Summary
Treasury Market Summary: Treasuries cheapened to open the new trading week, amid spillover from the climb in European rates, and as equities rallied. The long end of the Treasury curve underprformed with yields up over 4 bps, which was the case in European bonds too. Contributing to the risk-off trades was more support from hopes that the U.S.-China trade talks will be hashed out and a Phase One deal will be signed next month. Over the weekend VP He said he was hopeful, and President Trump reiterate today he expects a deal and that Phase Two will be easier. Meanwhile, expectations that a no-deal Brexit will not come to pass, despite the Saturday vote opposing PM Johnson's plans. The advent of a heavy Treasury supply calendar added to the erosion in Treasuries, and especially the long end as the market digested the potential for a new 20-year offering to meet budget needs. View the summary.