US-CHINA: Foreign Min Wang Accuses US Of 'Two-Faced Acts' In Regard To Tariffs
(MNI) London - During his annual press conference on the sidelines of the Two Sessions meetings, Chinese Foreign Minister Wang Yi earlier today accused the United States of engaging in "two-faced acts" with regards to the "arbitrary tariffs" imposed on Chinese exports. Wang said that “No country should fantasize that it can suppress China and maintain a good relationship with China at the same time,” while claiming the US administration is “meeting good with evil”.
- While the White House confirmed on 6 March that Canadian and Mexican goods covered under the USMCA agreement would not be subject to tariffs, there appears little sign that such a development will be forthcoming for Chinese goods, which are now subject to a 20% tariff after Trump doubled the initial 10% on 4 March.
- Wang, asked on Trump's shift from fostering international alliances towards an 'America first' standpoint, said that the US was imposing the “law of the jungle.” In this scenario Wang said “Small and weak countries will get burnt first, and the international order and rules will be under severe shock...Major countries should undertake their international obligations … and not seek to profit from and bully the weak.”
- There has been much speculation in recent weeks about whether the White House's stance will push the US and China closer to a trade war or trade negotiations. The rhetoric, at least at present, would indicate a shift towards the former rather than the latter.
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US TSYS: TY Testing Resistance, Refunding and ISM Services Headline The Docket
- Treasuries have extended yesterday’s rally that received a helping hand from lower-than-expected jobs openings, with today’s gains amidst broader FI rallies including from EGBs and Gilts.
- Today’s calendar focus is primarily on Treasury’s QRA at 0830ET (MNI Refunding Preview here) before ISM services for January at 1000ET. US policy headlines will also be closely watched, especially on US-China trade relations.
- Cash yields are 2.3-4.2bp lower, with declines led by 7s.
- 2s10s is within recent ranges at 28.5bps (-1.6bp).
- TYH5 sits close to session highs of 109-15 (+ 08+) on solid cumulative volumes of 410k.
- It challenges resistance, having cleared 109-10 (50-day EMA) and now eyeing 109-15+ (Feb 3 high). A clear break of the 50-day EMA would strength a short-term bullish case and open 109-31 (Dec 18 high).
- Data: MBA mortgages (0700ET), ADP employment Jan (0815ET), Trade bal Dec (0830ET), S&P Global US serv/comp PMI Jan final (0945ET), ISM services Jan (1000ET)
- Fedspeak: Barkin BBG TV (0730ET), Barkin fireside chat (0900ET), Goolsbee at automotive conference (1430ET), Bowman update on economy and bank regulation (1500ET), Jefferson gives lecture after the close (1930ET) in remarks likely to heavily resemble yesterday’s speech – see STIR bullet.
- Bill issuance: US Tsy $64B 17W bill auction (1130ET)
NORWAY: January House Prices Well Above Norges Bank Forecast
Norwegian secondary house prices rose a notable 1.4% M/M SA in January, up from 1.0% in December and well above Norges Bank’s 0.5% M/M projection in the December MPR. All else equal, this will be a hawkish input into Norges Bank’s March rate path, but is unlikely to deter a well-signalled 25bp cut.
- Low supply of new built homes since the pandemic has shifted demand towards existing homes, and continues to be a key driver of existing home price rises.
- Eiendom Norge also point to “less uncertainty about the household economy going forward” alongside “moderate relief in lending regulations”.
- There were record numbers of home listings and sales in January, according to the press release.
- There was little reaction in NOK to the data, with NOKSEK extending session lows at typing amid continued SEK strength, now 0.3% lower today,
OAT: Block trade
OAT Block trade, suggest buyer:
- OATH5 ~1k at 124.62.
