Treasury Market Outlook: yields are a little lower
Treasury Market Outlook: yields are a little lower, but trading was very quiet. The Treasury 10-year rate is 1 bp lower at 2.219%, with Bund and Gilt yields down similarly at 0.443% and 1.297%, respectively. Portugal's rating upgrade supported a further narrowing in spreads. Japanese markets reopened and the JGB even closed in the green despite a 1.96% surge in the Nikkei amid expectations Abe will call for a snap election. European bourses and U.S. equity futures are cautiously higher. A stronger than expected German ZEW investor confidence reading supported stocks. The markets are looking forward to the 2-day FOMC meeting, which begins today. The calendar also includes August housing starts, import and export prices, and the Q2 current account.