Mubasher: The US stock index futures started Thursday’s session positive, as China had recently expressed its wish to have a “calm” attitude when resolving the trade dispute with the US, CNBC reported.
Futures of Dow Jones opened the session in rise, while S&P and Nasdaq futures posted a slight increase as they reversed earlier losses.
Meanwhile, China’s Ministry of Commerce affirmed that the country was against escalating the trade tensions with the US, hence, reconciling with the investors’ growing tensions over a global recession.
Earlier on Wednesday, 28 August, the rate on the benchmark 30-year Treasury bond dipped to an all-time low, in contrast to the US yield curve, which inverted even further.
The spread between the 10-year Treasury yield and the 2-year rate slipped to negative 6 basis points on Wednesday, hence, widening losses.
Furthermore, “A 10-year rate below the 2-year yield is viewed by fixed income traders as an important recession prognosticator, marking an unusual phenomenon as bondholders receive better compensation in the short term.”, according to CNBC.
The US bond yields remained closer above record lows in Thursday morning.