Morning Juice – US Session Prep (28th July)

Sentiment
The dollar rose against all G10 peers, and Treasuries also rose in the wake of a US trade agreement with the EU. Traders are concentrating on a barrage of key US economic data and the Fed’s rate decision this week.

The US and EU agreed on a hard-fought deal that will see the bloc face 15% tariffs on most of its exports, including autos, averting a trade war that could have delivered a hammer blow to the global economy.

Treasury yields slipped 2 BPS across the curve, while money markets held bets Fed policy will remain on hold Wednesday, with the possibility of a quarter-point cut in September priced at 60%.

US and Chinese officials are meeting on Monday to extend their tariff detente beyond a mid-August deadline, and negotiate over other ways to further defuse trade tensions.

Japan expects just 1% to 2% of its recently agreed-upon $550 bln US fund to be deployed as investment, with loans making up the majority, according to the nation’s top chief negotiator, Akazawa.

Docket
11:30 ET
US sells $69 bln 2-Year Notes

13:00 ET
US sells $70 bln 5-Year Notes

Good luck!