Treasury Market Outlook: bonds and stocks are in decline to start December
Treasury Market Outlook: bonds and stocks are in decline to start December, still adjusting to the OPEC deal, while starting to look ahead to the Italy vote over the weekend. European sovereigns are pacing the weakness in sovereigns, playing catch-up to losses in Treasuries yesterday after the OPEC deal added to inflation worries. The UK Gilt is the underperformer, 5 bps higher at 1.46%. The 10-year Treasury rate is up 2 bps to 2.41%. European bourses are weaker, though Japan's Nikkei rallied 1.1% to its best level since January on strength in mining shares. In overnight news, Brexit secretary David Davies mooted the possibility that the UK could pay for continued access to the Eurozone, which boosted sterling. Also, the plethora of PMI data came in mixed. The U.S. calendar remains full ahead of tomorrow's jobs report. On tap today are the November manufacturing ISM, weekly initial jobless claims, October construction spending, and November auto sales. Challenger reported announced declined 3.8k in November. Fedspeak includes Mester and Kaplan. Earnings reports feature CIBC, Dollar General, Donaldson Company, Kroger, TD Bank, and Ulta Salon.