Treasuries reversed the trend from the past two days and sold off as investor appetite for risk assets improved. Equities and oil were buoyed by an easing in trade tensions between China and the US; comments from PBOC governor Yi Gang assuaged the market’s fear by promising to use monetary policy “comprehensively” in the event of any market shock. Later this morning, existing home sale data will come out with the market expecting a 1.1% month over month increase. Additionally, Fed Chair Powell will appear on a panel with ECB President Draghi, and the market will be looking to glean any information regarding the potential trade war from the former.
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