10-Year Note futures initially traded down to the 113'04 handle but found strength to recover near unchanged, currently priced at 113'14. Early selling pressure was attributed to renewed trade optimism, with discussions about a potential US-China trade resolution inferring a possible increase in economic activity, which also fueled significant buying pressure in equity markets. This selling pressure was countered later in the session by a shift in focus to the upcoming Fed announcement on Wednesday, with expectations of a quarter percent rate cut. The 10-Year yield held steady around the 400 basis point level, and the yield curve flattened slightly as the short end of the curve experienced selling pressure, moving the 2-Year up by just under 2 basis points. The market is now focused on the Fed's rate decision.
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