Trump signed off on a phase-one trade deal with China

President Donald Trump signed off on a phase-one trade deal with China, averting the Dec. 15 introduction of a new wave of U.S. tariffs on about $160 billion of consumer goods from the Asian nation, according to people familiar with the matter. The deal presented to Trump by trade advisers Thursday included a promise by the Chinese to buy more U.S. agricultural goods, according to the people. Officials also discussed possible reductions of existing duties on Chinese products, they said. The terms have been agreed but the legal text has not yet been finalized. (Bloomberg)

Treasuries and Australian government bonds dropped in Asian trading as a double dose of positive news for risk assets undermined demand for the safety of debt. U.S. 10-year yields climbed to the highest in a month as President Donald Trump signed a phase-one trade deal with China, averting the introduction of additional tariffs, while exit polls showed the Conservative Party winning the U.K election, paving the way for a Brexit deal. Australia’s 10-year yield surged the most in three years, while Japanese and South Korean bonds also declined. Treasuries declined across the curve, with the benchmark 10-year yield rising as much as five basis points to 1.95% after jumping 10 basis points on Thursday. (Bloomberg)

Source: Danareksa Sekuritas Debt Research
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