Treasury Market Outlook: Treasury yields bounced slightly higher
Treasury Market Outlook: Treasury yields bounced slightly higher overnight, unwinding some risk-off flows, with the wi 10-year rising to 2.22% from 2.20%. Gilts are leading core bond gains, but yields have come off earlier lows as the markets continue to adjust to the surprise UK election results last week. PM May's stance on Brexit seems to have softened, too, following the disastrous election. European bonds are in the green still but have pare their declines. Stocks are lower with European bourses off about 0.9% to 1.0%. France's Macron, meanwhile, had overwhelming success in the French National Assembly elections, and that should boosting his chances of passing an ambitious reform agenda. Today's U.S. highlights will be the Treasury's coupon auctions. The debt managers are selling $24 B in 3-year notes and $20 B in re-opened 10-year notes, condensed on Monday to avoid the FOMC meeting on Wednesday. The May Treasury budget will be released. Fedspeak remains quiet during the blackout period. There are no larger-cap earnings reports due. Meanwhile, key CPI and retail sales data will be out Wednesday morning, before the Fed concludes its meeting. The reports won't sway the rate decision, but could influence the statement's tone.