Treasury Market Outlook: bonds are a little weaker
Treasury Market Outlook: bonds are a little weaker, with the long end underperforming after the ECB warned about a potential jump in inflation at the start of the year. The 10-year Treasury yield is up 2 basis points to 2.555% from 2.525% overnight. Core European bond yields are also a couple of basis points higher. Peripheral notes are underperforming with rates up over 4 basis points. Stocks are mostly lower too, though Italy's MIB is rractionally higher on hopes for a Monte Paschi rescue. Oil prices are a little lower too on profit taking from gains over $53. The U.S. calendar is loaded today with data on November personal income and PCE, November durable orders, revised Q3 GDP, weekly jobless claims, November leading indicators, and the October FHFA home price index. The Treasury reopens $14 B in 5-year TIPS and announces details of the 2-, 5-, and 7-year note auctions for next week, along with reopened 2-year FRNs. The earnings calendar features reports from Cintas Corp., ConAgra Brands, and Rite Aid Corpindex.