morning 6-11

News:

  • 11-Jun-2019 02:21:43 AM – CHINA’S FOREIGN MINISTRY SAYS IF U.S. INSISTS ON ESCALATING TRADE TENSION, CHINA WILL RESPOND WITH FIRM RESOLVE
  • 11-Jun-2019 06:07:07 AM – U.S. COMMERCE SECRETARY ROSS SAYS DEFINITIVE CHINA TRADE DEAL CANNOT BE MADE AT G20, AT MOST PAVES WAY FOR      A PATH FORWARD -CNBC
  • 11-Jun-2019 06:07:28 AM – ROSS SAYS U.S-CHINA TRADE DEAL WILL EVENTUALLY END IN NEGOTIATION
  • Eurozone investor Confidence -3.3 vs f/c 2.5  
  • Chinese Local governments will have more money to spend on Infrastructure (Bloomberg)
  • Western Digital Froze its partnership with Huawei and halted shipments to company
  • Yesterday Goldman reiterated there call for no rate cuts from Fed this year.

 Treasury complex repricing the Fed as treasury yields move higher for second day in a row, from 2s through 30s yields higher by ~2bps still watching the gap above in 10-year yield 2.19 ish, 10s currently at 2.16% ish. A bit of a pullback in Eurodollars as well as percentage for June and July rate cuts move lower, September still showing an impressive 92% for a move lower. Still treasury Complex got a bi ahead of her skis so a bit of pullback in prices continues. Also weighing on treasuries is refunding cycle with 3 year auction today 10 and 30s later this week. Gold pulling back for second day in a row, as she is down $20 from Fridays highs.

 Not pulling back are stocks as another risk on type day  Chinese Stocks Shanghai +2.58%, CSI 300  +3%. Spoos +15 handles, Australia +1.58%, Dax +1.35%, Mib +.9% NASDAQ +55 handles, as everything is great for Stocks as Spoos work on sixth Consecutive higher close.

Today we see Monthly USDA grain report, which should be a market mover, PPI, and the just released NFIB small business optimism index, which beat Consensus. President trump for second day in a row is out bashing fed going so far to say that they have no idea what they are doing, Dollar is too strong  and they should be cutting rates due to low inflation.

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