January 9, 2019 8:45 a.m. Trade Talks Focus on the Positive, Everyone Focuses on Fed Minutes - by Lester Murray

Following the conclusion of three days of intensive trade negotiations, spokesmen for both China and the U.S. have hinted with optimism at the prospect of a positive outcome. As of yet, no official pronouncements have come from either side, but many expect a coordinated message to soon be released. While waiting for that official pronouncement of progress, equity markets across the globe are pre-reacting positively; the DJIA is up almost 200 points in early trading. Credit market behavior is a bit more muted with Treasury prices little changed from yesterday. Ten-Year @ 2.72%, Two-Year @ 2.58%.

The Treasury is selling $24B Ten-Year notes today and it is hoped that investor demand has a renaissance following a lackluster Three-Year auction yesterday. Minutes from the December 19 FOMC meeting are also scheduled for release today and investors will be scrutinizing that record for a sense of just how unified, or not, the Committee members are in their perceptions of appropriate policy measures.