Treasury Market Outlook: sovereign bonds are a little weaker
Treasury Market Outlook: sovereign bonds are a little weaker, but yields are only up a basis point or two with the 10-year at 2.37%, while the Bund is at 0.475% and the JGB at 0.045%. The Gilt is outperforming with the rate fractionally higher at 1.3898%. Worries over a hawkish Fed and some set up for payrolls, potential action from the BoE next month, stronger than expected German manufacturing orders, and Spanish uncertainties all left sellers in control. Equities were mixed, with the FTSE benefiting from a softer pound. Hong Kong shares tested two-year highs. U.S. futures are either side of unchanged after another record performance yesterday. Today's calendar is of course spotlighted by the September employment report, but a weaker number will be shook off as hurricane impacted. August wholesale data is also on deck. There is another barrage of Fedspeak with Kaplan, Bostic, Dudley and Bullard all on tap. Note Monday is a holiday in Treasuries and that could see some short covering into the long weekend.