Treasury yields are slightly higher this morning as risk-on sentiment continued with global equities posting noticeable gains (SHCOMP +1.4%, STOXX +1.5%). Currently, S&P 500 futures are pointing to an implied open +.54% despite the White House’s denial on comments that the US could remove restrictions on China to help progress trade talks. Although most gains overnight followed the trade headline, the incoming economic data beat expectations. The Philadelphia Fed manufacturing survey rebounded to 17.0 after three months of declines which provides some reassurance on business sentiment after the drop in the Empire State index. Additionally, initial claims declined to 213k and so far, does not show the effects of the shutdown. Later in the day, the market will be focused on the release of Industrial Production and The University of Michigan survey which is used to gauge consumer sentiment.  

Chris Eckhoff
Associate, Investment Management Group