Treasury Market Outlook: bonds are mostly higher
Treasury Market Outlook: bonds are mostly higher, even as equities post modest gains. The yield on the 10-year Treasury has dipped to 1.61% from 1.63% in Asian action. Peripheral bonds are leading the way in Europe, with yields several basis points lower. Bunds and Gilts are down 2 bps to -0.11% and 0.708%, respectively. The stronger dollar was the overnight news, especially versus GBP, which has slumped to 1.2737, the lowest since 1985, after PM May said she'd trigger Brexit by March 2017. USD-JPY also surged higher to 102.49, a near two-week high. Also newsworthy, India's new central bank board cut rates 25 bps to 6.25%, while Australia's RBA left policy unchanged at a record low of 1.50% under its new governor. Today's U.S. calendar includes Fedspeak from Lacker and Evans (neither are voters). Data is thin with just weekly chain store sales.