Treasury Market Outlook: bond yields declined a couple of basis points
Treasury Market Outlook: bond yields declined a couple of basis points on risk aversion after the FOMC minutes yesterday kept a Fed rate hike on the table. Poor Chinese trade data, where exports plunged 10.0%, also revived growth concerns. But rates have edged off their earlier lows. The 10-year Treasury rate is at 1.743% versus 1.72% in Asian action. The UK Gilt is at 1.015%, but was as low as 0.989% earlier, while the German Bund is at 0.044% from 0.028%. Stocks are weaker with European bourses down over 1% and the Dow future off about 0.6%. Oil prices are recovering from an earlier decline to $49.62 and are back at $50.15. Today's calendar includes weekly jobless claims and September import and export prices. The Treasury may also release its budget data. Weekly oil inventory data are also due. The Treasury auctions $12 B in reopened 30-year bonds, and announces the reopening of 30-year TIPS. There will be Fedspeak from Harker on the economic outlook from Philadelphia, and Kashkari at town hall in Montana after the close. The earnings calendar features reports from Delta Air Lines, First Republic Bank, Infosys, and Progressive Corp.