The dollar jumped and government bonds sold off as markets reacted to a de-escalation in the trade war between China and the US, which agreed to temporarily lower some tariffs for 90 days.

The United States and China said Monday they have agreed a deal to slash reciprocal tariffs as the world's two biggest economies seek to end a trade war that has put financial markets on edge. Speaking after talks with Chinese officials in Geneva,

Both sides are hailing the temporary reprieve, which will see American duties on Chinese goods cut to 30 percent, but analysts say the underlying issues remain.