U.S. Treasuries slump on improvement in risk sentiments following optimism over U.S.-China trade deal

The U.S. Treasuries slumped during Monday’s afternoon session, as risk sentiments were lifted by the better-than-expected US’ nonfarm payrolls print of 128k despite the GM strike and the consensus in principle on Phase 1 of the US-China trade deal.

US President Donald Trump hinted that the trade deal will be signed somewhere within the country, while Saudi Arabia’s Aramco has officially started its IPO process.

The yield on the benchmark 10-year Treasury yield jumped nearly 3 basis points to 1.756 percent, the super-long 30-year bond yield surged nearly 3 basis points to 2.239 percent and the yield on the short-term 2-year traded a tad over 2 basis points higher at 1.584 percent by 11:40GMT.

In the US, the week’s data calendar kicks off this afternoon with the latest factory orders figures for September, followed tomorrow with the non-manufacturing ISM for October and full trade report for September, Daiwa Capital Markets reported.

Of most interest on Wednesday will be non-farm productivity and labour costs figures for Q3, while September consumer credit data on Thursday will be accompanied by weekly jobless claims numbers.

And the week will conclude with the University of Michigan’s latest consumer confidence survey. In terms of Fed Speak, voting FOMC members Williams and Evans will speak in New York on Wednesday, while Kaplan and Kashkari are due to speak publicly on Tuesday. In the markets, the Treasury will sell 3-year notes (tomorrow), 10-year notes (Wednesday) and 30-year bonds (Thursday), the report added.

Meanwhile, the S&P 500 Futures remained nearly tad -0.27 percent down at 3,039.38 by 11:45GMT.