ANL 28.35 Decreased By ▼ -1.65 (-5.5%)
ASC 15.14 Decreased By ▼ -0.56 (-3.57%)
ASL 23.65 Decreased By ▼ -0.55 (-2.27%)
AVN 95.60 Decreased By ▼ -3.20 (-3.24%)
BOP 9.20 Increased By ▲ 0.10 (1.1%)
BYCO 10.07 Decreased By ▼ -0.38 (-3.64%)
DGKC 132.50 No Change ▼ 0.00 (0%)
EPCL 48.70 Decreased By ▼ -0.21 (-0.43%)
FCCL 24.55 Decreased By ▼ -0.50 (-2%)
FFBL 25.63 Decreased By ▼ -0.33 (-1.27%)
FFL 16.00 Decreased By ▼ -0.65 (-3.9%)
HASCOL 11.06 Decreased By ▼ -0.13 (-1.16%)
HUBC 84.20 Decreased By ▼ -0.79 (-0.93%)
HUMNL 7.27 Decreased By ▼ -0.33 (-4.34%)
JSCL 24.65 Decreased By ▼ -1.75 (-6.63%)
KAPCO 36.10 Decreased By ▼ -1.00 (-2.7%)
KEL 4.05 Decreased By ▼ -0.07 (-1.7%)
LOTCHEM 14.76 Decreased By ▼ -0.58 (-3.78%)
MLCF 46.00 Decreased By ▼ -0.73 (-1.56%)
PAEL 38.75 Decreased By ▼ -0.90 (-2.27%)
PIBTL 12.05 Decreased By ▼ -0.40 (-3.21%)
POWER 10.60 Decreased By ▼ -0.35 (-3.2%)
PPL 90.60 Decreased By ▼ -1.00 (-1.09%)
PRL 26.30 Decreased By ▼ -0.85 (-3.13%)
PTC 9.14 Increased By ▲ 0.04 (0.44%)
SILK 1.40 Decreased By ▼ -0.04 (-2.78%)
SNGP 39.00 Decreased By ▼ -0.80 (-2.01%)
TRG 138.75 Increased By ▲ 1.15 (0.84%)
UNITY 32.15 Decreased By ▼ -0.85 (-2.58%)
WTL 1.56 Decreased By ▼ -0.08 (-4.88%)
BR100 4,874 Decreased By ▼ -45.25 (-0.92%)
BR30 25,236 Decreased By ▼ -341.52 (-1.34%)
KSE100 45,363 Decreased By ▼ -366.17 (-0.8%)
KSE30 18,884 Decreased By ▼ -101.17 (-0.53%)
Markets

US yields edge higher on trade optimism

Yields on 30-year bonds were up at 2.268pc, from 2.265pc on Monday. US two-year yields advanced as well to 1.6
10 Dec 2019
  • Yields on 30-year bonds were up at 2.268pc, from 2.265pc on Monday.
  • US two-year yields advanced as well to 1.645pc, from Monday's 1.627pc.
  • The US central bank is widely expected to hold interest rates steady after cutting them three times this year.

NEW YORK: US Treasury yields rose on Tuesday after trading lower for most of the overnight session, as risk appetite improved amid optimism that the Trump administration could delay imposing tariffs on Chinese goods set to take effect on Sunday.

This is viewed as a positive development for ongoing US-China trade negotiations, as both sides try to forge a preliminary agreement.

The US government's tariffs on about $160 billion in Chinese goods are set to be applied on Dec 15.

A Wall Street Journal report earlier on Tuesday said US and Chinese trade negotiations are planning for a delay of the imposition of tariffs.

The report sent US stocks and Treasury yields higher.

"The headline on the possible delay of tariffs caused a bounce in yields," said Michael Chang, interest rates strategist at Societe Generale in New York. "Basically 10-year yields are in the 1.8pc range and they're hinged on trade talks."

Acting White House Chief of Staff Mick Mulvaney also added to positive trade expectations on Tuesday, saying the prospects for the first part of a US trade deal with China look good.

In morning trading, US 10-year note yields rose to 1.839pc, from 1.831pc late on Monday.

Yields on 30-year bonds were up at 2.268pc, from 2.265pc on Monday.

On the short-end of the curve, US two-year yields advanced as well to 1.645pc, from Monday's 1.627pc.

The decline in US Treasury prices also helped traders prepare for the auction of $24 billion in 10-year notes later on Tuesday.

Ahead of an auction, traders typically sell Treasuries to push the yield higher so they can buy them at a lower price.

Also on Tuesday, the Federal Reserve started its two-day meeting, but market participants do not expect fireworks from the statement.

The US central bank is widely expected to hold interest rates steady after cutting them three times this year.