After a neat little run yesterday, the big news was, perhaps, that momentous meeting between Trump and Kim in Singapore looks unlikely to take place. That news caused a minor shock within the markets and equities pulled back approximately what was made yesterday.  And bonds yawned,  stirred briefly and went back to sleep.

It would appear as though the Chinese-U.S. trade talks are also causing some consternation. Fears are arising that both countries may be about to re-engage in a tariff standoff.

Today saw the 2-year treasury auction take place with dealers being the main purchasers of the notes. The notes were set at 2.59% with 45.37% of the notes being purchased by dealers, their largest share since December 2016.

Elsewhere, European shares rallied as Italian bonds rallied. The Italian 10-year traded at 2.28% after trading recently at 2.41%. The bund rose 4 bp. Bunds tend to fall when regionals rally.

In an interesting move, the much fan fared CEO of JC Penney has jumped ship and moved to Lowes Cos Inc. This move has left Penney in a vulnerable position as profit forecasts provided signalled significant woes in the company. Penney may struggle to survive over the next few years.



Equities: The S&P 500 fell 0.31%. The Dow fell 0.72% The Stoxx rose 0.3%.

Currencies: The Bloomberg Dollar Index fell about 0.1%. The euro fell 0.1% and the yen rose 0.2%.

Bonds: The ten-year closed around at 3.063%. The 2-year closed at 2.57% and the 30-year closed at 3.20%. The ten-year bund closed at 0.56% and the UK gilt closed at 1.524% and the OAT closed at 0.834%. The U.S. curve closed the day with the following closes 2/10 at 49 bp, 2/30 at 63.5 bp and the 10/30 closed at 14.3 bp. The U.S. 5-year closed at 2.899%.

Commodities: WTI rose 0.2% and Gold dipped fell 0.1%. Copper continues its slide and has slipped about 6% this year.

Bitcoin is trading around $8,072.


Aussie Market Today.

Given market reactions, the equity market should be weaker on the day and bonds steady. However, if opinion changes regarding trade between the U.S. and China, expect the equities to rally and bonds to drift weaker.