As bonds hate good news, the U.S. non-farm paiyrolls seems poised at this writing to fall by 1 milliion. The ISM manufacturing index is thought to be going to uptick. China, Spain, Italy and France all showed bettwr-than-expected PMI readings for May (41.5 in April).. Trade expectations call for the unemployment rate to approach 20%. Traders remain net short bonds. Constrction spending is forecast to have a downtick from March's 0.9% reading.

Since bond prices move opposite to interest rates and interest rates are at an exrtreme low point and the Fed stating a desire to avoid going to negative interest rates, it would seem bond prices have nowhere to go but down. Fed Chairman Powell said "Negative rates are not an appropriate tool in the U.S." In the long run, this is inevitable, but the question is always "when", not "if."

Treasury Sec'y Mnuchin says he's comfortable spenidng $3 tillion because the Treasury can lock in very low rates. Federal student loan rates have hit record lows.

The obvious in the news affecting bond prices is that businesses were scheduled to re-open after the pandemic crisis, and then nationwide looting seems to favor them rather being boarded up. If that isn't bad news, we don't know what is, and certainly favors bond prices as investors look for safe havens. George Floyd protests will almost certainly exacerbate the coronavirus outbreak, as many protestors across the country were not wearing masks, nor observing social distancing, and were from poorer neighborhoods.

Special breaks from the Treasury Dept. allowed $1 trillion in high grade corporate debt to be issued this year. Flanked by the Fed's programs, companies are racing to issue new debt to restructure existing debt, pay down bank lines or just raise cash to weather the recession. There are a record number of companies at risk of downgrade by S&P due to exposure to the pandemic's effects.

Blackrock started a new electronicalliy traded fund for Treasury Bonds. Blackrock has an existing $139.1 billion in treasury bond assets.

The current recession is projected by analysts to last at least into 2021.

U.S.- China tensions have had a negative impact on bond prices.

The Government is at last showing signs of worrying about sending out more stimulus checks, both Democrats and Republicans. The President is warming up to the idea which isn't dead, however. The President did call another $3 trillion stimulus bill to give each American $1,200 who earned less than $75,000 a year "Dead on arrival." The first round of stimulus was poorly targeted but Republicans are proposing to cut payroll taxes. Stimulus remains "tempting" because a strong economy will help Republican reelection efforts.

Re-opening the economy after months of coronavirus lockdown measures is being carefully monitored by investors. There are many reasons, especially nationwide protests, why this re-opening could be seriously delayed.

Reviving equities in the stock market are competing with bonds and lowering bond prices. At the same time, New York Fed President John Williams said the Fed was thinking about the use of policies that would aim to keep borrowing costs across different maturities of government paper at fixed levels. Such measures could prevent yields for targeted bonds from rising. Yield control has been used in other countries.

Eurozone proposals for borrowing 750 billion euros from the ECB to establish a recovery fund for stimulus programs there were seen as pressuring bond prices worldwide.

A wave of debt supply from the Treasury this past week pressured bonds as the Federal Government looked for ways to finance its widening budget deficits. $96 billion of bonds were sold in the most recent week. The Fed is looking more to rely on extended maturity bonds to get through the pandemic crisis. That included $20 billion in new 20-year bonds to finance the ballooning deficit.

Former President George Bush endorsed Joe Biden for President. A key point in the decision was Trump's failure to unequivocally rebuke while nationalists in the deadly Chartlotsville rally.

Private equity markets for technology, infrastructure, resources, and real estate have increased to about $6.5 trillion, a more than 300% increase over the past decade. They offer better returns, but there has been less scrutiny recently of corporate behavior leaving these markets vulnerable. Private markets lack transparency and consistency. Citigroup warns that the stock market isn't reflecting reality, either. Valuations are way over extended. Private debt is more illiquid. The pandemic is exposing these risks, especially in places like the airline industry. Taken altogether, we regard the news as negative for bond prices as interest rates may rise to attract more capital away from other questionable sources.