Treasury Market Outlook: a plunge in UK Gilts has led bonds lower
Treasury Market Outlook: a plunge in UK Gilts has led bonds lower, with global equities in the red too, with the exception of the FTSE 100. The Gilt yield popped over 9 bps higher to 0.983%. The 10-year rate rose to 1.756% where it met resistance and dipped to 1.74%. Meanwhile Cable dropped to a "flash crash" nadir of 1.1491 after French PM Hollande said Brexit is not possible without the UK paying the price. The weaker pound is supporting modest gains in the FTSE. Meanwhile, attention will be turning to the U.S. and the September employment report, and its implications for Fed policy through 2016, with just two FOMC meetings left. Worries over a rate hike, along with signs of less accommodative postures from the ECB, BoE, and BoJ have weighed on global sovereign bonds over the last several sessions. Also key today will be Fedspeak from the hawks Fischer, Mester, and George, while uber-dove Brainard speaks at the end of the session. Other data includes August wholesale trade and consumer credit. Trading may thin out fast following the data ahead of the Columbus Day holiday for Treasuries on Monday, though Wall Street is open.