U.S. Government debt prices were lower and yields higher on Thursday (Nov.21)

House Democrats and the Trump administration did not come to a deal on moving forward with the United States-Mexico-Canada Agreement during a meeting on Thursday. Lawmakers and the White House have worked for weeks to resolve Democratic concerns about enforcement tools for labor and environmental standards under the deal, known as the United States-Mexico-Canada Agreement. Leaving a meeting with House Speaker Nancy Pelosi and U.S. Trade Representative Robert Lighthizer, House Ways and means Committee Chairman Richard Neal said the sides made progress but did not strike a final agreement. (CNBC)

U.S. government debt prices were lower and yields higher on Thursday amid further uncertainty over U.S.-China trade. The yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.7772%, while the yield on the 30-year Treasury bond also rose to around 2.2346%. U.S. and Chinese officials had raised prospects of signing a phase one trade deal in a few weeks’ time, but the Wall Street Journal reported Wednesday, citing former Trump administration officials, that ongoing U.S.-China trade talks could hit an impasse. (CNBC)

Time may have run out on what once looked like the Treasury market’s trade of the year: Investors are abandoning positions for a steeper curve amid the longest stretch of flattening in more than a year. The gap between two- and 10-year yields has shrunk about 10 bps since early last week. The move has reversed this month’s widening, which had extended a trend in place since late August. (Bloomberg)


source: Danareksa Sekuritas Debt Research
Photo by Jean Carlo Emer on Unsplash