Treasuries are little changed this morning following yesterday’s bear steepening, which saw long-end yields rise 8 bps. Yesterday’s increase in Treasury yields was initially sparked by higher than expected core CPI readings for June, and the move was exacerbated by a very weak 30-year bond auction at noon. Risk markets remain encouraged by dovish communication from both the Fed and the ECB, but progress on the trade front is less clear. Investors appear to still be content with the truce reached at the G-20 summit two weeks ago, but there have been a few negative headlines since then. Yesterday, a Washington Post article highlighted White House concerns with China’s recent reshuffling of its trade negotiation team. The move by Beijing suggests it may be preparing to take a harder line in the negotiations, and other articles suggest that Xi may be facing internal challenges to his power.
Managing Director, Investment Management Group
|7/12/2019||PPI Final Demand MoM||0.00%||0.10%||0.10%||—|
|7/12/2019||PPI Ex Food and Energy MoM||0.20%||0.30%||0.20%||—|
|7/12/2019||PPI Ex Food, Energy, Trade MoM||0.20%||0.00%||0.40%||—|
|7/12/2019||PPI Final Demand YoY||1.60%||1.70%||1.80%||—|
|7/12/2019||PPI Ex Food and Energy YoY||2.10%||2.30%||2.30%||—|
|7/12/2019||PPI Ex Food, Energy, Trade YoY||—||2.10%||2.30%||—|
|7/12/2019||Bloomberg July United States Economic Survey|
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