Stocks opened higher after news broke Friday that the U.S. and Mexico struck a deal that lifted the tariff threat. Mexico has agreed to expand their boarder programs to stem migration into the U.S. Tensions between the U.S. and China remain high. Also, pressure increased on Beijing after China announced imports dropped significantly last month.
Bond prices are down, and the 10-year treasury is yielding 2.13%. Sovereign bonds fell across the board, along with gold and the yen, as demand for havens ebbed. While riskier assets rose worldwide, some measures came down off the initial highs seen when the markets first opened as investors look toward the next developments in the U.S. – China trade tensions and the outlook for the Fed policy. It is likely the heavy lifting on trade will get done at the G-20 summit later this month.