Treasury Market Outlook: bond yields have moved higher
Treasury Market Outlook: bond yields have moved higher off of overnight lows, led by the European periphery as the market sets up for ECB President Draghi speeches tomorrow and more importantly, Friday at Jackson Hole. A rally in equities and supply considerations are weighing on bonds after a weaker than expected German ZEW reading knocked rates down. The Italian 10-year is over 9 bps higher at 2.11% after an earthquake off th e coast of Naples added to worries over the economy in general. The Treasury note is up over 2 bps to 2.20%, while the German Bund is up 1 bp at 0.406%. Today's calendar is light, with just the August Richmond Fed index and June FHFA home prices and weekly chain store sales due. There is little on the earnings calendar with reports due from Coty, Intuit, Medtronic, and Salesforce.com.