Treasury Market Outlook: stocks remained weaker overnight
Treasury Market Outlook: stocks remained weaker overnight on risk aversion following the extended losses on Wall Street late yesterday after President Trump said maybe his rhetoric on North Korea wasn't "tough enough." The Dow closed with a 0.93% loss, with the S&P down 1.45%. Asian equities plunged between 1% and 2%, though trading was thinned by a holiday in Japan, while European bourses are down about 0.75% to 1.3%. Yields are lower too on flight to safety, with declines of 2 to 7 bps. The 10-year Treasury is little changed, though, at 2.192%, while the Bund fell 3 bps to 0.372%, rates not seen since late June. The yen remained firm too, with USD-JPY at a fresh eight-week low. There were no surprises in European inflation data, which were rather tame. Attention will turn to today's U.S. July CPI figures, if only briefly, as it will factor into the FOMC's rate stance for the rest of the year. The only other items on today's agenda are Fedspeak from Kaplan and Kashkari and earnings from Magna International and TELUS Corp.