Returns on the optimism over tariff offers

* Treasury produces higher on the day on tariff optimism * Two years of returns that are the lowest since September 2022 * Tariff’s security that is expected to keep the market briefly (updated in the late New York morning time) by Karen Brettell New York, April 7 (Reuters) -US Treasury returns on Monday to rise to the rising optimism that some countries may be negotiating. to avoid trading. However, trading was nice as traders continue to try to determine how long trading lovers will last and to what extent they will hinder economic growth. White House economic adviser Kevin Hassett said the president spoke to world leaders all weekend and will listen to proposals for good offers. The European Union is still prepared to negotiate with the US administration, the president of the European Commission reaffirmed on Monday, adding that Brussels was also ready to take countermeasures. Angelo Manolatos, a macro strategist at Wells Fargo, today has a greater yield higher than the prospects that there may be some tariff relief. “But if we think about the bigger picture, we expect a big hit this year to grow and much lower treasury yields.” Yields also teamed up sharply, but briefly on a report that Trump could interrupt rates for all countries except China for 90 days, although it was denied by the White House. Investors, including hedge funds, can also sell liquid assets such as US government bonds to meet margin calls due to losses they face in other assets. The yields of the 10-year note yields of 10 years were 4,119%with 12.8 basis points on the day. They dropped to 3.86% on Friday, the lowest since October 4th. Interest rate -sensitive returns of two years increased by 2.9 basis points to 3.699%. They reached 3.435%earlier, the lowest since September 2022. The yield curve between two years and ten years Note was last at 42 basis points, after reaching 45 basis points, the steepest since January 13. Treasury returns dropped with shares on the concerns about US and the global economy, as US President Donald Trump. US government bonds also acted as a safe haven of the unrest of the stock market. “For the foreseeable future mortgage investors, investors are going to try to find their foot and they are not really sure where they even think that fair value is based in the post-tariff world,” says Will Compernolle, Macro strategist at FHN Financial. Trump said on Sunday that foreign governments would have to pay ‘a lot of money’ to lift the rates he was as ‘medicine’. He also showed no sign that he was relaxing his tariff policy on Monday, blew China because he struck with retaliation tariffs and repeated a call from the US Federal Reserve to lower interest rates. Fed Funds Futures Traders have raised the bets on how many times the Fed will lower interest rates, although Fed chairman Jerome Powell has not indicated that the US central bank is in a hurry to resume cuts. Traders now price in 96 basis points of cuts by the end of the year, with the first probably in June. “You have to think that if the stock market collapses enough, Powell will see it as a tightening in financial circumstances and maybe feel the need to relieve a little forward,” Compernolle said. As for Trump, “I think the president can look at it like a chicken game and he doesn’t want to be the first one to cut, so I don’t think there’s a White House of any kind.” Powell said on Friday that the US central bank is waiting to see the impact of rates, and notes that they are ‘bigger than expected’, and the economic fall, including higher inflation and slower growth, is likely to be too. The US economic focus is the March consumer price and producer price reports this week, which are Thursday and Friday respectively. Data showed on Friday that employers added more jobs than expected last month, although the unemployment rate also typed higher. The demand for Treasury debt will also be tested this week, as the Treasury sells $ 119 billion to coupond guilt. This will include $ 58 billion in three years on Tuesday, $ 39 billion in ten years of note on Wednesday and $ 22 billion in 30-year bonds Thursday. (Reporting by Karen Brettell; additional reporting by Rae Woe and Harry Robertson; editing by Sam Holmes, Alex Richardson, Sharon Singleton and Andrea Ricci)