1. US and China continue trade negotiations
2. Powell: current monetary policy is set to achieve inflation target
3. The yield curve of American Treasuries is close to inversion
Today, the Ministry of Commerce of China announced the achievement of certain agreements with the United States regarding the settlement of problems of bilateral relations. During a telephone conversation, Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Stephen Mnuchin agreed to continue discussing issues that prevent the signing of an interim foreign trade agreement.
During his speech on Tuesday, the head of the Fed Jerome Powell, said that the regulator conducted a cycle of lowering interest rates this year due to the worsening state of the US economy. At the same time, Powell noted that now the monetary policy is well tuned to maintain favorable conditions on the labor market and return inflation to the target level of 2%.
The yield curve of American treasuries is again close to inversion. Yields on 10-year and 2-year securities have almost leveled off and have been in this position for 9 days. This is the longest leveling period since 2015. Only 15 bp remains before inversion. Recall that the inversion of the yield on American treasuries is a signal of the beginning of a recession in the United States.
News worth paying attention to today:
15:00 GMT. USA: CB Consumer Confidence Index
15:00 GMT. USA: October home sales data