10-Year T-Note Futures Market News and Commentary
Dec T-notes (ZNZ19) On Wednesday closed up +11.5 ticks. The 10-year T-note yield fell by -5.0 bp to 1.733%.
Dec T-notes climbed to a fresh 2-week high Wednesday and the 10-year T-note yield dropped to a 2-1/2 week low of 1.726% as an increase in U.S./China trade tensions sparked long liquidation in stocks and boosted the safe-haven demand for T-notes.
Trade tensions rose after the U.S. Senate late Tuesday night passed legislation supporting Hong Kong protesters and warned China against a violent suppression of the demonstrations. China responded by threatening unspecified retaliation if the bill becomes law. T-notes pushed even higher after the editor of China's Global Times said in a Twitter post that few Chinese believe that China and the U.S. can reach a deal soon and that China is prepared for the worst-case scenario of a prolonged trade war.
Wednesday's minutes of the Oct 29-30 FOMC meeting were neutral to slightly bearish for T-notes as the minutes stated... Read more