The Treasury curve is a touch higher and flatter this morning as the Friday’s risk on trade carried on through the weekend. Equities rallied despite an increase in trade tensions between China and the US, as the Chinese threatened to walk away from the commitments it had made if President Trump decides to go ahead with imposing tariffs.
The G-7 meet later this week and the market will be looking to see if President Trump reverses his decision regarding tariffs on Canada and the EU which would hopefully stave off a global trade war.
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