February 11, 2019 / 2:43 PM / 5 months ago

TREASURIES-Yields rise as inflation data, trade talks in focus

    * Inflation data on Wednesday next major economic focus
    * U.S. and China meet to discuss trade agreements
    * Senator says talks to avert another U.S. shutdown are

    By Karen Brettell
    NEW YORK, Feb 11 (Reuters) - U.S. Treasury yields edged
higher on Monday as investors awaited data on Wednesday that
will show inflation pressures in January and as investors
focused on trade talks between the United States and China.
    Yields have fallen as Federal Reserve officials, including
Chairman Jerome Powell, adopt a much more dovish tone on further
rate increases, and on concerns about slowing international
    Consumer price data will be the next indication of whether
prices are rising, a necessary prerequisite to support further
rate hikes.
    “For the most part, we are kind of in a holding pattern
until we get the CPI data later this week,” said Tom Simons, a
money market economist at Jefferies in New York.
    “The burden of proof on inflation data now is to try to
convince the market that things are going to turn around,”
Simons said. However, “not only do you need to see more positive
inflation data but you also need to see it over a number of
months also, one individual print isn’t going to do it.”
    Benchmark 10-year notes             fell 8/32 in price to
yield 2.661 percent, up from 2.632 percent late on Friday. The
yields have fallen from 2.799 percent on Jan. 18 and are down
from a seven-year high of 3.261 percent in November.
    China struck an upbeat note on Monday as trade talks
resumed, but also expressed anger at a U.S. Navy mission through
the disputed South China Sea, casting a shadow over the prospect
for improved Beijing-Washington ties.            
    The U.S. is expected to keep pressing China on longstanding
demands that it reform how it treats American companies'
intellectual property in order to seal a trade deal that could
prevent tariffs from rising on Chinese imports. 
    A trade deal between the two countries could be positive as
it would bolster expectations of future inflation.
    Other potential market catalysts include talks to avert
another U.S. government shutdown.
    "The talks are stalled right now," Republican Senator
Richard Shelby told "Fox News Sunday." He said the impasse was
over Democrats' desire to cap the number of beds in detention
facilities for people who enter the country illegally.
    Meanwhile Britain's economy slowed sharply in late 2018,
pushing full-year growth to its weakest in six years as Brexit
worries hammered investment by companies and the global economic
slowdown weighed on trade, official data showed on Monday.

 (Editing by Nick Zieminski
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below