Treasury Market Outlook: bonds are stumbling as equities rally
Treasury Market Outlook: bonds are stumbling as equities rally. A steep ascent in Treasury yields is pacing the weakness as the 10-year yield is over 5 bps higher at 2.34%. Core European rates are only a couple of ticks higher, while the JGB closed up 1 bp at 0.013%. Stocks are moving higher as oil prices rebound ahead of the OPEC statement, as there are reports that so far ministers are supporting a supply cut. WTI is testing $49 bbl, even as the dollar is a little firmer. European spreads have widened after stronger than expected German sales, employment and European HICP inflation data. The calendar is heavy and is highlighted by the November ADP private employment survey. Also ahead are October personal income and PCE, the November Chicago PMI, and October pending home sales, along with weekly oil inventories. The MBA reported mortgage applications dropped 9.4%. The Fed will release the Beige Book for the December 13-14 FOMC meeting. Fedspeak includes Powell and Mester. The earnings calendar features reports from PVH Corp., Royal Bank of Canada, and Synopsys.