Treasury Market Outlook: a jump in risk appetite is weighing on bonds
Treasury Market Outlook: a jump in risk appetite is weighing on bonds. European bourses and U.S. futures are surging after moderate gains in Asia, after stronger than expected Chinese inflation data allayed growth concerns. Strong demand has boosted the Euro Stoxx 50 by 1.8%, recovering after three days of losses. The German DAX is 1.6% higher while the FTSE 100 continues to underperform. Bond yields are subsequently higher with the 10-year Treasury up 3 bps to 1.778%. The UK Gilt is over 7 bps higher at 1.094% as the weaker Pound continues to heighten inflation concerns. U.S. data on September retail sales is awaited, along with PPI, as well as August business inventories and October consumer sentiment. The Treasury budget is tentatively due too. Fedspeak highlight too, with Fed chair Yellen giving a key note address at the Boston Fed's annual economic conference. It's unlikely she'll provide any clear policy hints. However, Eric Rosengren on CNBC just suggested pretty good odds for a December hike. The earnings calendar picks up with reports due from financial heavyweights Citigroup, JPMorgan Chase, Wells Fargo, and PNC Financial Services. Commerce Bancshares, and First Horizon National are also due.