U.S. government debt prices moved higher Thursday morning, amid reports that China and the U.S. have agreed to cancel additional tariffs imposed in their trade war.
At around 03:10 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.8462%, while the yield on the 30-year Treasury bond was higher at around 2.3377%.
Market players are following U.S.-China trade discussions amid growing concerns that the signing of the “phase one” deal could be delayed until December. President Trump is scheduled to be in London for a gathering of NATO leaders on Dec. 3 – 4, and a potential signing could happen before or after that visit, people close to the talks told CNBC. However, China has reportedly agreed to cancel existing tariffs with the U.S. in a phased way.
In terms of data, there will be jobless claims at 08:30 a.m. ET and consumer credit numbers out at 03:00 p.m. ET.
There are also a few Fed speeches scheduled for Thursday. Atlanta Fed President Raphael Bostic will speak in New York at 07:10 p.m. ET and the Dallas Fed President Robert Kaplan will give a speech in Texas at 10:50 p.m. ET.
The U.S. Treasury is set to auction $55 billion in 4-week bills, $40 billion in 8-week bills; and $19 billion in 30-year bonds.