February Trade Balance Report showed a widening in the trade deficit to $70.5 billion (consensus -$69.0 billion) from a downwardly revised $68.7 billion (from -$68.3 billion) in January. Exports were $6.9 billion less than January exports and imports were $5.0 billion less than January imports.
The key takeaway from the report is that the decline in both exports and imports is reflective of a slowdown in global trade activity.
Treasury yields took a turn lower in response to the data. The 10-yr note yield, at 3.34% shortly before the release, is down three basis points to 3.30% and the 2-yr note yield, at 3.77% shortly before the release, is down nine basis points to 3.74%.