Historic Yields Clash with U.S. Economy Strength as Trump-Xi Summit Begins

• Global Treasury yields, especially 10-year and 30-year, have spiked to multi-year highs (since 2007 and 2004 respectively), driven by strong economic data and hawkish Fed comments.
• The US economy remains robust, evidenced by stronger-than-expected PMI flash data and initial jobless claims staying below 200K for two consecutive weeks.
• Fed speakers are in focus today, with high probabilities for further rate hikes (October 70.9%, December 92.9%), reflecting concerns about sticky inflation.
• A summit between Xi Jinping and Donald Trump is underway, with potential announcements regarding trade, AI safety, and other geopolitical topics expected to drive market headlines.

The discussion highlights the ongoing global yield spike, with 10-year and 30-year Treasury yields reaching multi-year highs, driven by strong US economic data and hawkish Fed commentary. While yields are slightly down this morning, the market remains cautious about potential further rate hikes. The US-China summit is also a key event, with potential announcements impacting trade and other geopolitical areas.