The U.S. Treasuries jumped during Monday’s afternoon session, after investors shifted toward safe-haven assets following President Donald Trump’s increased pressure on China on Sunday to reach a trade agreement, threatening to raise tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent as of Friday, unless any further progress is made at the trade meetings scheduled for later this week.
Now, investors will be looking forward to the Federal Open Market Committee (FOMC) speakers Harker and Williams’ speech, due for today at 13:30GMT and 14:00GMT respectively for further direction in the debt market.
The yield on the benchmark 10-year Treasury yield slumped nearly 5 basis points to 2.482 percent, the super-long 30-year bond yields suffered 3-1/2 basis points to 2.891 percent and the yield on the short-term 2-year plunged 5 basis points to 2.288 percent by 11:20GMT.
In reaction to renewed escalation in US/China trade tensions, US equity futures point to a lower opening today and stocks across Asia fell, Eurobank Economic Analysis & Financial Markets Research reported.
In FX markets, increased risk aversion favoured the JPY’s safe haven appeal, while the EUR/USD remained trapped within the 1.1100-1.1300 range that has been prevailing since early April, in spite of solid US labour data, the report added.
Meanwhile, the S&P 500 Futures remained flat at 2,937.38 by 11:25GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 34.56 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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