Treasury Market Outlook: bonds extended gains overnight
Treasury Market Outlook: bonds extended gains overnight after Monday's rally, led by gains in peripheral markets. The Portuguese 10-year yield has dropped over 11 bps, while the Italian has fallen below 2%. The German Bund is off over 4 bps to 0.22% and the 10-year Treasury down 3 bps to 2.29%. Stocks are also higher after record highs on Wall Street, helped by firmer oil prices. Japanese markets were closed for a holiday. Outside of the big earthquake in Japan, there wasn't a lot of news. U.S. trading could thin into the Thanksgiving holiday. The economic calendar is light and will include October existing home sales, the November Richmond Fed index, and weekly chain store sales. The Treasury auctions $34.0 B in 5-year notes after a rather tepid 2-year offering. There is no Fedspeak scheduled for the rest of the week. The earnings calendar has Analog Devices, Burlington Stores, Campbell Soup, Dollar Tree, Eaton Vance, Hewlett Packard, Hormel Foods, Jacobs Engineering, Signet Jewelers, and Veeva Systems.