Treasury Market Outlook: bonds are little changed to lower
Treasury Market Outlook: bonds are little changed to lower, having relinquished earlier gains. The yield on the 10-year Treasury traded around 1.66% before testing 1.69%, from which it's backed off. Bund and Gilt yields are 2 bps higher at -0.038% and 0.797%, respectively, from -0.067% and 0.760% earlier. European bourses are lower too, but off their worst levels, while U.S. futures are modestly weaker as well. Much of the focus was on currencies where the euro continued to climb versus the yen and pound on ECB taper worries, and sterling saw another 31-year low at 1.2685 in follow-through selling after PM May's comments the other day on a hard Brexit. Oil prices are higher at $49.58. Services PMI data dominated overnight, with the Eurozone final services index coming in at 52.2 in September from 52.8 in August, while retail sales slipped 0.1% in August, and were revised lower in July. It's a busy slate in the U.S., with the September ADP private employment survey headlining ahead of Friday's jobs report. Also on tap is the September services ISM, the Markit services PMI, the August trade report, August factory orders, and weekly oil inventories. The MBA reported mortgage applications climbed 2.9% in the September 30 week. There is also Fedspeak from Kashkari and Lacker. Earlier Evans said he expects one hike this year. The earnings calendar features reports from Acuity Brands, Constellation Brands, Global Payments, Monsanto, RPM International, and Yum! Brands.