U.S. government debt prices were higher Wednesday morning, as investors seek more clarity over U.S.-China trade developments.
Market focus is largely attuned to global trade developments, as investors await more details about a preliminary agreement between the U.S. and China.
Late last week, President Donald Trump and Chinese officials announced that the world’s two largest economies had agreed on a so-called “phase one” deal. It is understood that Beijing agreed to billions of dollars in agricultural purchases from the U.S., while Trump said he would not move ahead with a new round of planned tariffs, among other items.
The deal, which is not yet signed, is set to be confirmed in the first week of January, according to U.S. Trade Representative Robert Lighthizer.
The U.S. Treasury is set to auction $18 billion in 1-year-and-10-month floating rate notes (FRNs) on Wednesday.
Market participants are also likely to closely monitor speeches from policymakers at the U.S. central bank, with Chicago Fed President Charles Evans and Fed Governor Lael Brainard both set to comment on the world’s largest economy.
No major economic data is scheduled on Wednesday.