Treasuries Steady Before French Vote; Trump's Tax Vow Trims Gain

  • Tight French race leaves investors grasping for direction
  • Advance pared after Trump says tax proposal coming next week

Treasuries were little changed and remained within Thursday’s ranges as markets worldwide struck a cautious tone ahead of France’s presidential election.

The 10-year yield was little changed at 2.23 percent at 3:23 p.m. New York time. Bonds trimmed earlier advances after President Donald Trump said the administration will release a tax plan for individuals and businesses in the latter part of next week, as he approaches the end of his first 100 days in office.

  • "Washington has effectively hit the ‘reset’ button after spending a couple of weeks focused on Syria and North Korea," BMO strategists Ian Lyngen and Aaron Kohli wrote in research note. "The Treasury market is apparently far less convinced of the veracity of the political pledges this round."
  • Fed Vice Chairman Stanley Fischer said in CNBC interview that softness in inflation data is a "one-time shock," and expressed optimism about the global economy
  • Corporate issuance muted; the week has seen $25 billion in 3 sessions largely financials with JPM, Citi, BAC and MS all coming to market
  • 3-month dollar Libor fixes at 1.15622% (+0.31bp); around 8k EDM7 traded following the fix
  • France’s first round of voting begins Sunday, with polls closing at 2 p.m. New York time

— With assistance by Edward Bolingbroke

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