Treasury Action: the markets are mixed with no strong directional drivers
Treasury Action: the markets are mixed with no strong directional drivers. Treasuries are range bound in a curve flattening trade. The 30-year rate is 1.8 bps lower at 2.21%; the 10-year year is down 0.9 bps at 1.764%, and the 2-year is 0.5 bps higher at 1.605%. The curve is at 14.5 bps. The Dow is up 0.27%, while the S&P 500 is flat and the NASDAQ is -0.07% lower. Better than expected consumer confidence and Markit PMI data was offset by uncertainties over the U.S.-China trade deal. President Trump has repeated the two sides are "potentially very close" to a Phase One deal, and President Xi has also stated he wants a deal, but will "fight back" if necessary. However, there are a lot of headwinds. The FCC just voted 5-0 to ban Huawei and ZTE from a government subsidy program. The upcoming Hong Kong elections and Congress' bill that supports the protesters are adding another layer of friction.