Treasury Market Outlook: Treasuries are a little firmer
Treasury Market Outlook: Treasuries are a little firmer, with yields having come off overnight lows. The 2-year is at 1.51%, with the benchmark 10-year at 2.35%. Core yields are a couple of basis points higher in Europe, with the Bund at 0.46% and the Gilt at 1.388%, though peripheral rates headed south, paced by Spain as the markets were relieved as Catalonia put off its independence bid, for now. Equities are mixed with again Spain leading the rally, while the FTSE is in the red amid ongoing Brexit worries. Japan's Nikkei posted its best level in about 21 years after a 3.4% jump in machinery orders, and as investors see improving economic conditions. U.S. futures are a tad weaker but after another record close yesterday. Crude oil is up over $51. Fedspeak and supply dominate today's U.S. slate. On tap are the Dallas Fed's Kaplan, Chicago Fed's Evans, and SF Fed's Williams. The FOMC minutes from the September 19-20 FOMC meeting are due as well. The Treasury auctions $24 B of 3-year notes, and $20.0 B of re-opened 10-year notes. The day's data includes the August JOLTS report. The MBA reported mortgage applications fell 2.1% in the week ended October 6.