Treasuries sold off overnight while risk assets rallied on the news that the US and China appeared to have made some progress on their trade talks. Treasury Secretary Mnuchin stated that the world’s two largest economies were putting the trade war on hold. While China promised to substantially reduce the deficit, but little progress was made in terms of protecting intellectual property rights and other specific US demands; so the market will still look for more guidance on those issues.

Hafizan Hamzah
Director, Investment Management Group

05/21Chicago Fed Nat Activity Index0.30.340.10.32
05/22Richmond Fed Manufact. Index10-3
05/23MBA Mortgage Applications-2.70%
05/23Markit US Manufacturing PMI56.556.5
05/23Markit US Services PMI5554.6
05/23Markit US Composite PMI54.9
05/23New Home Sales679k694k
05/23New Home Sales MoM-2.20%4.00%
05/23Revisions: New Homes
05/23FOMC Meeting Minutes
05/24Initial Jobless Claims220k222k
05/24Continuing Claims1748k1707k
05/24House Price Purchase Index QoQ0.70%1.60%
05/24FHFA House Price Index MoM0.60%0.60%
05/24Bloomberg Consumer Comfort54.6
05/24Existing Home Sales5.55m5.60m
05/24Existing Home Sales MoM-0.90%1.10%
05/24Kansas City Fed Manf. Activity2026
05/25Durable Goods Orders-1.30%2.60%
05/25Durables Ex Transportation0.50%0.10%
05/25Cap Goods Orders Nondef Ex Air0.70%-0.40%
05/25Cap Goods Ship Nondef Ex Air0.40%-0.80%
05/25Revisions: Wholesale Trade
05/25Revisions: Retail Sales
05/25U. of Mich. Sentiment98.898.8
05/25U. of Mich. Current Conditions113.3
05/25U. of Mich. Expectations89.5
05/25U. of Mich. 1 Yr Inflation2.80%
05/25U. of Mich. 5-10 Yr Inflation2.50%