Treasury yields fall ahead of the Fed's anticipated rate cut
- Meanwhile, Treasury Secretary Steven Mnuchin, and U.S. Trade Representative Robert Lighthizer travel to Shanghai, China to resume trade negotiations.
- On the data front, Dallas Fed manufacturing figures for July will be released at around 10:30 a.m. ET.
U.S. government debt prices rose on Monday as traders wait to hear from the Federal Reserve later this week.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at 2.0505% while the yield on the 30-year Treasury bond fell to 2.5763%.
Traders are bracing for a potential cut in interest rates for the first time in since the financial crisis. The U.S. Federal Reserve meets Tuesday and will announce its latest rate decision on Wednesday.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.37% | UNCH |
| US3M | U.S. 3 Month Treasury | 5.396% | +0.002 |
| US6M | U.S. 6 Month Treasury | 5.389% | +0.004 |
| US1Y | U.S. 1 Year Treasury | 5.211% | +0.004 |
| US2Y | U.S. 2 Year Treasury | 4.993% | -0.007 |
| US10Y | U.S. 10 Year Treasury | 4.663% | -0.006 |
| US30Y | U.S. 30 Year Treasury | 4.777% | -0.005 |
Meanwhile, Treasury Secretary Steven Mnuchin, and U.S. Trade Representative Robert Lighthizer are set resume trade negotiations. It marks their first official in-person meeting with the Chinese delegation since the G-20 truce.
The two-day meeting is set to take place in Shanghai on Tuesday after President Donald Trump and Chinese leader Xi Jinping reached a ceasefire last month. However neither side is showing any sense of urgency for a deal.
"With the Fed aggressively offsetting the economic and market shock of the trade war, the incentives to reach a deal have weakened," Ethan Harris, Bank of America's global economist said in a note on Monday.
On the data front, Dallas Fed manufacturing figures for July will be released at around 10:30 a.m. ET.
The U.S. Treasury is set to auction $72 billion in 13-week and 26-week bills.