Treasury yields fall amid US-China trade talks; Fed minutes in focus

  • Fixed income traders monitored the latest global trade developments, after U.S. and Chinese officials met for a fresh set of discussions.
  • President Trump said the March 1 deadline for the two nations to reach a deal was not a “magical date,” hinting at an extension to the target date.
  • Meanwhile, market players will keep an eye out for Federal Reserve minutes from the central bank’s January meeting.

U.S. government debt prices were higher on Wednesday as investors watched out for developments in the latest round of U.S.-China trade talks.

The yield on the benchmark 10-year Treasury note sank to around 2.634 percent, while the yield on the 30-year Treasury bond slipped to 2.978 percent. Bond yields move inversely to prices.

Fixed income traders are keeping an eye on the latest global trade developments, after U.S. and Chinese officials met for a fresh set of discussions on Tuesday. Higher level talks are expected to arrive later in the week, the White House said Monday.

President Donald Trump said on Tuesday that the March 1 deadline for the two nations to reach a deal was not a “magical date,” hinting at an extension to the target date.

Meanwhile, market players will keep an eye out for Federal Reserve minutes from the central bank’s January meeting, which are due to be published Wednesday at 2 p.m. ET.

In other Fed news, New York Federal Reserve President John Williams said Tuesday that he was content with the current level of U.S. interest rates. The policymaker said he didn’t see any reason to hike rates again except in the event of surprising growth or inflation data.

The Fed’s raising of rates four times last year was a big point of anxiety for the markets, with market players nervous about the pace of the central bank’s stimulus tightening. The institution paused its once quarterly rate hikes last month, amid concerns of a potential slowdown in economic growth.

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