Stocks are rallying hard to begin Tuesday’s exchange as trade tensions ease. China’s Vice Premier spoke with Steven Mnuchin by phone to discuss plans for negotiations going forward. Many are hailing this notion as a small victory, as the world’s two largest economies display a willingness to converse. The S&P500 is currently trading at 2,667.90, 1.14% higher.
Treasuries are little changed in the AM as investors patiently await more color concerning the U.S./China trade relationship. Additionally, the producer price index (ex food/energy) came in better-than-expected at a 0.3% MoM increase, versus estimates of a 0.1% rise for the month of November. On a YoY basis, PPI (ex food/energy) came in at a 2.7% increase. The UST yield curve remains at the forefront of investor attention as the 2-3 Yr notes continue to trade higher than the 5 Yr. The US 10-YR Note is currently trading at 2.8610%, 0.0035 higher.