NEW YORK — US Treasuries slipped on Monday, pushing yields higher, as investors showed more optimism about the global economic outlook after the United States and the European Union struck a trade agreement on Sunday.
Auctions on US two-year and five-year notes were mixed, neutralizing the impact on Treasury yields.
It’s an event- and data-packed week starting with the Treasury’s refunding announcement on Wednesday. The US Treasury is widely expected to maintain current auction sizes for notes and bonds when it announces financing plans, and will likely keep them steady for some time.
But it has been the EU trade deal that has set the bond market on a risk-on path.
The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the US impose a 15 percent import tariff on most EU goods – half the threatened rate but much more than Europeans hoped.
The EU also pledged to make $750 billion in strategic purchases, covering oil, gas, nuclear and chips during Trump’s term, including up to $600 billion in US military equipment.
