- President Trump signs executive orders on Saturday to bring coronavirus relief, overstepping the Congress after they failed to come up with a solution to smoothen the economic impact of COVID on the U.S.
- The House of Democrats have criticized as ineffective and unconstitutional, with Nancy Pelosi and Steven Mnuchin signaling at a negotiation
- U.S. Health Secretary Alex Azar also spoke in strong support of Taiwan, which is expected to raise tension in the cold war between US-China
Wrapped in administrative discussions about providing COVID stimulus to businesses coupled with the recent falling out of Washington-Beijing, investors in the U.S. monitored the state of stimulus communications as the government debt prices were lower on Monday.
At around 2:50 a.m. ET, the yield on the 10-year-Treasury benchmark note was higher at 0.5673% and the yield on 30-year-Treasury bond was higher at 1.2431%. For context, yields move inversely to prices. So the more yield recorded, the further the prices of bonds would decrease.
With news coming in of President Trump signing executive orders on Saturday to bring coronavirus relief, overstepping the Congress after they failed to come up with a fiscal solution to smoothen the economic impact the pandemic has had on the U.S.
However, his executive orders have been highly criticized as ineffective and unconstitutional. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have already indicated towards starting of negotiations on Sunday.
The U.S. now has about 5 million confirmed cases of COVID-19 and more than 162,000 deaths. As most parts remain under shutdown conditions to control the spread of disease, Chicago Federal Reserve President Charles Evans said on an interview with CBS News that a fresh round of financial aid would be vital to prolonging lockdown.
In the meanwhile, investors also watch with bated breaths as the US-China tie unfolds as an aftershock of Trump’s executive order banning Chinese tech companies TikTok and WeChat. U.S. Health Secretary Alex Azar also spoke in strong support of Taiwan, currently at loggerheads with China, which could further agitate Beijing.