Treasury Market Outlook: bonds are weaker, paced by losses in Italy
Treasury Market Outlook: bonds are weaker, paced by losses in Italy where the 10-year yield climbed over 12 bps to 2.14% from 2.00%. The turnaround from early gains and subsequent selloff in Europe stemmed from an ECB report on repo markets and the limited collateral as the central bank continues to buy up bonds. The 10-year Treasury yield bounced up to 2.32% from 2.29%. Stocks were mostly firmer in Asia after Wall Street's record highs the past two sessions, but European bourses and U.S. equity futures have given up gains and have tumbled lower. Oil prices are also, but off yesterday's highs. In overnight data, Eurozone PMIs were stronger than expected and German home prices continued to rise. It's a busy day in the U.S. ahead of the Thanksgiving holiday. Reports include weekly jobless claims, October durable orders, October new home sales, the September FHFA home price index, and the final reading on November consumer sentiment. The MBA reported its mortgage index bounced 5.5% in the week of November 18. The Treasury auctions $28.0 B of 7-year notes. The minutes to the November 1-2 FOMC meeting are also on deck. The earnings calendar is light, with reports due from Ctrip.com, and Deere.