February 25, 2019 Trade Euphoria Fades, But Just a Little by Lester Murray

After opening enthusiastically to prospective positives on the U.S.-China trade situation, equity and credit markets alike, have moved to the center.  Stock prices are still up, and bond prices are still down, but neither as much as they were during early morning trading activities. It's going to be a data-heavy week, but this morning's manufacturing news was mixed. The Chicago Fed's National Activity Index was a miss, but a similar manufacturing report from the Dallas Fed was a big hit. Treasury investors will be swallowing a lot of  supply this week as refundings for 2's, 5's, and 7's hit the market. Today's Two-Year auction had a lukewarm reception from investors. The Ten-Year is still languishing around 2.67% with the Two-Year hovering pretty close to 2.50%.