Stocks are rallying this morning in early trading and bond yields are higher across the curve following the announcement of a surprising de-escalation of the trade war between the world’s largest trade partners. For the next 90 days, most Chinese goods imported into the U.S. will be taxed at 30% instead of 145% and the tax on U.S. goods shipped into China will be reduced from 125% to 10%. In addition, China has agreed to allow restricted rare earth elements to resume shipment to the U.S.

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