U.S. government debt prices were lower Thursday morning, after the U.S. and China agreed to hold talks to end their long-running trade dispute.
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 1.4993%, while the yield on the 30-year Treasury bond was also higher at around 1.9987%.
It comes after China confirmed it would hold talks with the U.S. in early October, raising hopes the world’s two largest economies could de-escalate their trade war before it inflicts further damage on the global economy.
Washington and Beijing have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
On the data front, investors are likely to closely monitor a flurry of economic reports on Thursday.
The ADP National Employment Report for August will be released at 8:15 a.m. ET, with the latest weekly jobless claims and second quarter productivity and unit labor costs set to be released slightly later in the session.
A final reading of services PMI (Purchasing Managers’ Index) for August, ISM nonmanufacturing data for August and factory orders for July will also be released during morning deals.
The U.S. Treasury is set to auction $55 billion in 4-week bills and $40 billion in 8-week bills on Thursday.