Treasury Market Outlook: yields continued higher overnight
Treasury Market Outlook: yields continued higher overnight on bearish momentum and more hawkish comments from central bankers. Gilts continued to lead the move, with the 10-year rising over 8 bps to hit 1.336%. The Bund is up over 2 bps to 0.43%, with the Treasury 1.8 bps higher at 2.02%. The usually dovish BoE member Vileghe backed the BoE message from yesterday of a rate hike in coming months. Also ECB's Lautenschlaeger, who said now is the time for a decision on QE, also rattled rate markets. The upside in yields may have been contained somewhat by news of another N. Korea missile launch, which say USD-JPY dive, albeit briefly. Equity are mixed with weakness in Europe offsetting a 0.5% rally in the Nikkei. After a fresh new high yesterday, the Dow mini is little changed. Today's calendar includes several reports of interest, though the effects from Harvey will make analysis difficult. On tap is the September Empire State index, August retail sales, industrial production, July business inventories and preliminary September consumer sentiment.