Treasury Market Outlook: bonds are firmer
Treasury Market Outlook: bonds are firmer, reversing yesterday's losses, led by the European periphery where yields are 6 bps lower. The yield on the 10-year Treasury has dipped back to 2.32% versus the 2.345% close yesterday, and it's down on the week from Monday's 2.374% finish. Lack of any walk-back from Yellen yesterday has helped soothe tightening worries somewhat. The markets have also taken a different spin on Draghi worries, and see the potential that central bankers will use the Jackson Hole meeting to assure that caution will prevail in removing stimulus. Stocks are mixed with core markets having dipped into the red though are up on the week, for the best gain in months. Oil prices are higher. The dollar remains soft. Today's U.S. calendar will be crucial for the near term outlook with data on June CPI, retail sales, and industrial production, along with preliminary read on July consumer sentiment. There are also a number of earnings reports from financials. Fedspeak features Kaplan, while the Chicago Fed will release the text of President Evans' speech (canceled yesterday).