Treasuries are little changed following a relatively quiet overnight session. The tone in risk markets is modestly improved today following comments late yesterday from White House trade adviser Peter Navarro. Navarro told CNBC that the restrictions on foreign investments scheduled to be released later this week won’t be as severe as the market is anticipating (primary catalyst for yesterday’s equity sell-off). His comments contradicted a more rigid statement from Treasury Secretary Mnuchin earlier, and it’s perhaps a sign of growing divisions within the administration regarding the current trade rhetoric. Harley-Davidson announced yesterday that it would not be passing along the cost of European Union retaliatory tariffs to consumers. The company said it would instead eat the cost of the 25% tariff, and the Milwaukee-based company said it may also shift some motorcycle production away from the U.S. to other countries. Regarding the latter, President Trump quickly tweeted a scathing attack on the company’s consideration of such actions.
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