Treasury Yields Rise as “Fear Trade” Subsides

Today’s announcement that the U.S. is delaying the next round of trade tariffs continues a trend of positive global news in September (Brexit, Hong Kong, etc).  Yields are up from their recent lows, the 10 year T is at 1.70%. Tomorrow’s ECB meeting and announcement is highly watched as Draghi nears the end of his term and is expected to announce his final round of Quantitative Easing.  There is some “drama” as mixed messages are being received from different ECB factions.  But with Germany tipping towards recession, some accommodative measures are expected. The markets will react based on how the reality matches the predictions already priced in.  Stay tuned.  By David R. Pascale, Jr. , Senior Vice President at George Smith Partners