US Treasury Sec. Mnuchin: Hopeful China trade talks will make progress

During his appearance at the CNBC interview, the US Treasury Secretary Steve Mnuchin gave several statements concerning the likely US-China trade relations, Iran and also concerning the readiness to issue longer maturity bonds. He previous spoke that the US expects China to buy more agricultural products and the President Donald Trump is prepared to keep tariffs in place and raise them if necessary.

Key quotes

“Hopeful China trade talks will make progress.”

“Huawei is not a pawn in trade talks.”

“If there is proper demand US will issue 50-year bonds.”

“Looking at 50-year bond, if there is proper demand, will consider 100-year bonds.”

“Negative interest rates are bad for banks.”

“French understand they cannot give a line of credit to Iran without US approval.”

“There are no plans currently on easing Iranian sanctions.”

When asked about the International Monetary Fund's (IMF) prediction of 0.8% reduction in global GDP during 2020 due to US-China trade war, Mr. Mnuchin said, "Don't see it in the US as that big an impact."

FX implications

Markets showed little reaction to the news as carrying mixed messages. However, the latest one increasing the odds of a good start to the October trade talks could keep Antipodeans happy for the time being.

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