U.S. Treasuries higher after last week’s selling sent yields on longer tenors to fresh highs for the year.
The advance has been assisted by a sharp drop in the price of oil after President Trump called off another round of attacks on Iran, adding last evening that another deal might be taking shape. The improvement in sentiment was also visible in equity futures, though they have retreated from their overnight highs after another bumpy session in South Korea’s Kospi (-5.1%).
Today’s economic data slate will be headlined by the 10:00 ET release the ISM Manufacturing Index for July ( consensus 54.0%; prior 53.3%).
Crude oil is falling back below its 50-day moving average (82.01) to a one-week low while the U.S. Dollar Index is down 0.1% at 99.80.
Yields:
2-yr: -6 bps to 4.23%
3-yr: -7 bps to 4.29%
5-yr: -8 bps to 4.38%
10-yr: -8 bps to 4.67%
30-yr: -6 bps to 5.22%