10-Year Yields Hit 2004 Highs as Trump, Xi Jinping Summit Begins

• 10-year Treasury yields are under significant pressure, with yesterday's volume exceeding that of the last Fed meeting, driven by stronger S&P Global PMI data.
• Expectations for Fed rate hikes are increasing, with around three hikes priced in for this cycle, leading to a narrowing 10-year vs. 5-year Treasury yield spread.
• Geopolitical factors, including the Iran conflict and the US-China trade summit, are contributing to market uncertainty, alongside weakness in technology stocks and a rotation into high-yield dividend stocks.

The discussion highlights significant pressure on 10-year Treasury yields, reaching 2004 highs, driven by strong PMI data and increased expectations for Fed rate hikes. Geopolitical tensions, particularly regarding Iran and the US-China trade summit, are also influencing market dynamics. Equities have pulled back, and volatility is elevated, suggesting a cautious outlook.