The Treasury curve is a touch higher and flatter this morning as the Friday’s risk on trade carried on through the weekend. Equities rallied despite an increase in trade tensions between China and the US, as the Chinese threatened to walk away from the commitments it had made if President Trump decides to go ahead with imposing tariffs.

The G-7 meet later this week and the market will be looking to see if President Trump reverses his decision regarding tariffs on Canada and the EU which would hopefully stave off a global trade war.

Hafizan Hamzah
Director, Investment Management Group

06/04Factory Orders-0.50%1.60%
06/04Factory Orders Ex Trans0.30%
06/04Durable Goods Orders-1.70%
06/04Durables Ex Transportation0.90%
06/04Cap Goods Orders Nondef Ex Air1.00%
06/04Cap Goods Ship Nondef Ex Air0.80%
06/05Markit US Services PMI55.755.7
06/05Markit US Composite PMI55.7
06/05JOLTS Job Openings63506550
06/05ISM Non-Manf. Composite57.656.8
06/06MBA Mortgage Applications-2.90%
06/06Revisions: Trade Balance
06/06Nonfarm Productivity0.60%0.70%
06/06Unit Labor Costs2.80%2.70%
06/06Trade Balance-$49.0b-$49.0b
06/07Initial Jobless Claims222k221k
06/07Continuing Claims1740k1726k
06/07Bloomberg June United States Economic Survey
06/07Bloomberg Consumer Comfort55.2
06/07Household Change in Net Worth$2076b
06/07Consumer Credit$14.000b$11.622b
06/08Wholesale Trade Sales MoM0.30%
06/08Wholesale Inventories MoM0.00%0.00%