U.S. government debt prices turned higher Tuesday morning, as investors await the planned signing of an interim trade deal between the world’s two largest economies.
Market focus is largely attuned to global trade developments, with the U.S. and China set to ratify their so-called “phase one” trade deal on Wednesday.
Ahead of the preliminary agreement, the U.S. Treasury announced on Monday that it had dropped China’s designation as a currency manipulator.
The decision comes more than five months after the Treasury Department formally made the designation, with Beijing now on a “monitoring list” for currency practices along with nine other countries, including Germany, Italy and Japan.
On the data front, the National Federation of Independent Business’ (NFIB) small business optimism index for December will be released at 6 a.m. ET.
The latest Consumer Price Index (CPI), a key indicator of inflation trends, will follow slightly later in the session. Economists polled by Dow Jones expect U.S. consumer prices to have increased 0.2% in December, at a 2.3% annual rate.
There are no major U.S. Treasury auctions scheduled on Tuesday.