U.S. Treasuries jump on safe-haven demand after Trump administration unveils China’s trade tariff details

The U.S. Treasuries jumped Wednesday on rise in safe-haven demand after the US administration unveiled yesterday a detailed list of some 1,300 Chinese imports worth USD50 billion that could be subject to a 25 percent tax, in retaliation for China’s intellectual property practices.

The yield on the benchmark 10-year Treasuries slumped 3 basis points to 2.75 percent, the super-long 30-year bond yields plunged 2 basis points to 2.99 percent and the yield on the short-term 2-year traded 2-1/2 basis points lower at 2.25 percent by 11:30GMT.

In the US, Wednesday will bring the March ISM non-manufacturing survey along with the similar Markit PMI indices. Daiwa Capital Markets’ America Chief Economist Mike Moran expects the headline non-manufacturing ISM index to remain within the upper end of the recent range, although an easing in the new orders index from the record reading in February is likely to see it decline roughly ½ppt on the month.

In addition, ahead of Friday’s labor market report, the ADP employment change figure will be watched. And February’s factory orders report will also be released, with the already reported increase of 3.1 percent m/m in bookings for durable goods likely to account for most of the increase in the headline figure.

Meanwhile, the S&P 500 Futures slumped 1.45 percent to 2,575.00 by 11:30GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 25.83 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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