Inversion Reversal! U.S. And China Reach Partial Agreement Setting Stage For Broader Trade Deal (Stock Market Soars And UST 10Y-3M Goes Positive)

The U.S. and China reached a partial agreement Friday that would broker a truce in the trade war and lay the groundwork for a broader deal that Presidents Donald Trump and Xi Jinping could sign later this year, according to people familiar with the matter.

As part of the deal, China would agree to some agricultural concessions and the U.S. would provide some tariff relief. The pact is tentative and subject to change as Trump prepares to sit down with China’s Vice Premier Liu He later Friday.

Equity markets rejoiced!

wem

And the US Treasury 10Y-3M curve went positive for the first time since end of July.

yc10y3m

Time for a victory dance?

Screen Shot 2019-10-11 at 1.53.56 PM.png

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.