November 12, 2019 / 2:34 PM / 3 months ago

TREASURIES-Yields just below three-month highs before Trump speech

    * Trump speech on Tuesday in focus
    * Fed's Powell to speak on Wednesday 
    * CPI, retail sales data due this week 

    By Karen Brettell
    NEW YORK, Nov 12 (Reuters) - U.S. Treasury yields held just
below three-month highs on Tuesday as investors waited on a
speech by U.S. President Donald Trump for new indications on how
close the United States and China are to agreeing to the first
phase of a trade deal.
    Optimism that the two countries will reach a deal to roll
back tariffs has boosted stocks and reduced demand for safe
haven U.S. bonds in the past week, despite mixed messaging about
tariff removals.
    “There have been swirling headlines that really haven’t
dented the belief that regardless of what people say on any
given day, that phase one is going to get executed and signed at
some point before the end of the year,” said Jim Vogel, an
interest rate strategist at FHN Financial in Memphis, Tennessee.
    The world's two biggest economies have agreed to roll back
tariffs if a deal is completed, officials from both sides said
on Thursday.             
    Trump said on Friday, however, that he has not agreed to
roll back tariffs, feeding doubts about when the 16-month trade
war may end.             
    Trump is expected to announce on Tuesday that he is delaying
a decision on whether to slap tariffs on cars and auto parts
imported from the European Union, likely for another six months,
EU officials said.             
    Benchmark 10-year notes             were last up 1/32 in
price to yield 1.931%. The yields rose to 1.973% on Thursday on
optimism a trade deal would be reached, which was the highest
since August 1.
    Investors are also focused on economic data for further
clues about whether the Federal Reserve is likely to continue
cutting rates.
    Optimism about the U.S. economy has increased since jobs
data for October and a service sector report last Tuesday beat
    This week’s major U.S. economic releases include consumer
price data for October, which will be released on Wednesday, and
retail sales data for October released on Friday.
    Federal Reserve Chairman Jerome Powell will speak before
lawmakers in Washington on Wednesday.

 (Editing by David Gregorio)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below