U.S. government debt prices were lower Monday morning, as investors await the planned signing of a so-called “phase one” trade deal between the U.S. and China later this week.
U.S. Treasury Secretary Steven Mnuchin said Sunday that he expects an interim trade deal between Washington and Beijing will add significantly to economic growth in 2020.
The world’s two largest economies plan to sign a phase-one trade deal on Wednesday, which includes China purchasing $200 billion worth of U.S. goods over the next two years and the U.S. reducing tariffs on about $120 billion worth of Chinese products.
Investors are likely to closely monitor speeches from policymakers at the U.S. central bank, with Boston Fed President Eric Rosengren, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari all set to comment on the world’s largest economy.
The U.S. Treasury is set to auction $42 billion in 13-week bills and $36 billion in 26-week bills on Monday.
On the data front, Federal Budget figures for December will be released at 2 p.m. ET.