Despite the strong economic data a risk-off tone has developed in the US economy over the past two couple of trading sessions. That risk-off tone continued yesterday with falls in global equity markets and declines in Global Bond Yields. US Treasury Yields fell 5.7 bps to 2.33%. The moves again mostly occurred in the real yield component which fell 3.8 bps to 0.36%, while the breakeven inflation rate fell 1.8 bps to 1.97%. Despite the decline, it is not clear what exactly drove the move and overall markets are focused on the President Xi-Trump meeting on Thursday and on US Payrolls next Friday. Traders have been closing short Treasury positions over the past few weeks amidst Congressional gridlock (typified by the failure to pass healthcare reform) and a lack of policy detail on fiscal plans. Comments by the Fed’s Dudley on Friday were also interpreted as hinting at a lower terminal Fed funds rate then currently implied by the Fed’s median dotpoint of 3%.