China’s 10-year government bond yields are expected to decline further towards 3.20 percent amid the prospect of China’s weak April data and still-benign US inflation outlook, according to the latest research report from Scotiabank.
The US-China bilateral trade remains important for both nations. According to Scotiabank’s calculation, China’s trade surplus with the US totalled USD83.5 billion in the first four months this year, accounting for 93.5 percent of China’s aggregate trade surplus.
US President Donald Trump tweeted on Wednesday that "China has just informed us that they (Vice-Premier) are now coming to the US to make a deal." White House press secretary Sarah Sanders said Wednesday about Chinese officials coming to the US for trade talks that "We’ve got indications they want to make a deal."
She added that "Our teams are in continued negotiations. We’re going to sit down tomorrow, and we’ll see what happens from there."
The US Trade Representative’s office took a formal step toward implementing the tariffs on Wednesday by publishing a Federal Register notice confirming the duties will increase to 25 percent from 10 percent with effect from Friday.
China’s commerce ministry said on Wednesday that it would take retaliatory measures if Washington went ahead with a plan to raise tariffs on Chinese imports on Friday.
"We keep a close eye on the 11th round of US-China trade talks set for May 9-10 amid continued uncertainty surrounding the upcoming negotiations. Global markets are likely to be relatively quiet during Thursday’s Asian session but turn volatile in North American session," the report commented.


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