Equities and bond yields fall as the earlier optimism proves fleeting
The DAX is down by 0.5% currently while we’re seeing Treasury yields get dragged lower across the curve as well. 10-year yields are down by 2 bps to 1.563% at the moment.
There isn’t much headlines driving the news here but it highlights that market participants are still a little jittery about US-China trade talks if anything else.
China’s foreign ministry offered no comment on reported agricultural purchases and continued to urge the US to stop “unreasonable pressure” on Chinese companies, but those headlines aren’t anything major and they came a few minutes after the drop in risk above.
As such, I’m not going to say that this is entirely related to that but it certainly doesn’t help to sustain the cautious optimism earlier.