Ultra T-Bond Futures Market News and Commentary
Mar T-notes (ZNH20) on Tuesday closed down -1.5 ticks. The 10-year T-note yield rose by +1.7 bp at 1.836%.
Mar T-notes on Tuesday traded mixed during the day and settled slightly lower. Stocks recovered from overnight losses on trade optimism, which pushed T-notes lower. Stocks recovered after Bloomberg reported Tuesday morning that U.S. and Chinese trade negotiators are laying the groundwork to delay a new round of U.S. tariffs on $160 billion of Chinese goods that is scheduled to be implemented this Sunday, Dec 15.
The market is unanimously expecting the FOMC at its 2-day meeting that begins Tuesday and ends Wednesday afternoon to leave interest rates unchanged with the funds-rate target at 1.50%/1.75% and the IOER (interest on excess reserves) rate at 1.55%.
Tuesday's U.S. economic data was mixed for T-notes after Q3 non-farm productivity was revised lower to -0.2%, weaker than expectations of -0.1%. However, Q4 unit labor costs were revised to +2.5%, weaker... Read more