China raised $6 billion in its latest bond

China raised $6 billion in its latest bond offering in the currency, after pulling in about $20 billion of investor orders for the sale, according to people familiar with the matter. The nation sold $1.5 billion of three-year notes, $2 billion apiece of five and 10-year notes and a $500 million 20-year tranche. The strong demand allowed the sovereign to cut pricing by 25 basis points on the shortest tranche to 35 basis points above U.S. Treasuries, according to a person with knowledge of the sale who isn’t
authorized to speak publicly. (Bloomberg)

U.S. President Donald Trump declared Tuesday that talks with China on the first phase of a trade deal were near completion after negotiators from both sides spoke by phone, signaling progress on an accord in the works for nearly two years. “We’re in the final throes of a very important deal,” Trump told reporters at the White House. “It’s going very well.” (Bloomberg)

U.S. government debt prices rose on Tuesday as investors digested weaker-than-expected economic data and the latest development on U.S.-China trade. The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7345%, while the yield on the 30-year Treasury bond was also lower at around 2.1731%. Consumer confidence dipped for a fourth straight month in November as economic conditions weaken towards the end of 2019. The index for consumer confidence came in at 125.5 this month, compared to a Dow Jones’ estimate of 126.6. (CNBC)



Source: Danareksa Sekuritas Debt Research
Photo by Nuno Alberto on Unsplash