Treasury Market Outlook: bonds are on the back foot as Q4 opens
Treasury Market Outlook: bonds are on the back foot as Q4 opens. Equities have extended gains as Deutsche Bank fears eased last week. Today's gains have been paced by the FTSE 100 (German's DAX was closed for Unification Day) as GBP tumbled on comments from U.K. Prime Minister May who suggested a "hard Brexit" landing might be in store. EUR-GBP rose to a record high at 0.87281. The 10-year Treasury yield is up slightly at 1.61%. The 2-year is testing 0.78%. The U.K. Gilt yield is modestly lower at 0.735%. Overnight data showed Eurozone manufacturing PMIs were mostly higher. In the U.S. it is a busy week, culminating with Friday's nonfarm payrolls. As for today, there is the September manufacturing ISM, along with August construction spending and September auto sales. Fedspeak is absent today, though there are several Committee members at the podium during the week as well. Earnings season will be picking up soon too.