Treasury Market Outlook: Treasuries are weaker
Treasury Market Outlook: Treasuries are weaker with longer dated yields up over 3 bps, as the market returns from Monday's holiday. The 10-year Treasury is at 1.75%. Asian bonds were underwater too, though European sovereigns have rallied. Gilts are outperforming in Europe with the 10-year rate down over 5 bps to 0.967%, after the rate popped over 1% yesterday, not seen since Brexit. The gains could be brief, however, amid ongoing worries over the Pound, and as better than expected European data (ZEW improved) add to QE tapering concerns. Asian equities posted solid gains, while European bourses are modestly higher, while U.S. equity futures are modestly lower. Today's U.S. calendar is very thin and rather inconsequential with just the Fed's Labor Market Conditions Index and weekly chain store sales on tap. The Treasury is auctioning $78 B in 3- and 6-month bills, $40 B in 4-week bills, and $20 B in 52-week bills.