Morning 1-17

A big Announcement overnight weighing on the longer end of U.S. Yield Curve 30 year yields +2 Bps while 2s, 3s and 5 years see yields lower by 1 bps. Steepening the curve overnight as 2s 30s steeper by 4 bps just off session high levels

(AP) — The U.S. Treasury, faced with financing budget deficits topping $1 trillion annually, is introducing a new 20-year bond. The new 20-year bond was chosen after officials considered
proposals for a 50-year or 100-year bond, Treasury said in a statement Thursday. It said the new 20-year bond would be made available to investors in the first half of 2020. More details are expected at the Treasury’s quarterly refunding news conference on Feb. 5.

China GDP Commentary via trading Economics “The Chinese economy advanced 6.0 percent year-on-year in the December quarter of 2019, the same as in the previous quarter and matching market expectations. This remained the weakest growth rate since the first quarter of 1992, amid trade pressure from the US and sluggish demand from home and abroad. Considering full 2019, the economy grew by 6.1 percent, the slowest pace in 29 years but still within the governments target of 6 to 6.5 percent. Not all doom and Gloom out of China, retail sales and Industrial production a bit better then consensus

European Economic data Showed EZ construction output raising less than Expected and U.K. retail sales Stagnant for the 5th consecutive month, this along with China GDP data creating a sense that Global recovery still struggling to take hold. Today U.S. data is second tier Housing starts, Industrial production and U of Michigan Confidence. The highlight of these numbers may be the Inflation components of the Michigan data

Phase 1 Deal signed with China and now it appears the EU and USA may be next fight.EU trade Chief Hogan had some harsh Comments regarding US trade policies yesterday so heads up as the tariffs threats may now turn towards the EU
Per Bloomberg Volatility in Currencies drops to lowest level ever
Go Figure spoos up, European bourse higher across the board Dax +.5 % Cac in France +.9%. Cartier watch and jewelry company +5% as Holiday sales met Forecasts Hmm High End doing well but yet 5 below struggled. Gold higher Dollar higher, palladium is unreal higher again today by 2.75% Platinum +1.9% market’s sure have a QE feel to them don’t they? March Nat Gas Dipped below $2

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