Treasury Market Outlook: Gilt yields have surged higher
Treasury Market Outlook: Gilt yields have surged higher, with the 10-year note up over 8 bps to 1.335% amid reports a U.K.-EU Brexit divorce settlement has been reached. Additionally, firm inflation data from German states has weighed. The selloff spilled over to most of European sovereigns and Treasuries, where rates are up about 2 bps. The Treasury is at 2.345%. Those factors have overshadowed the North Korean ICBM launch, though Asian rates closed measurably lower. Equities are higher, with the exception of the FTSE and the Hang Seng, after a 1.1% surge in the DJIA yesterday, in part on tax reform hopes. NYMEX crude prices dropped after bearish API data but are climbing off their lows as OPEC/NOPEC look to maintain cuts. Today's U.S. slate will be highlighted by the second look at Q3 GDP, and also includes the October pending home sales index. The MBA reported mortgage applications dropped 3.1% in the November 24 week. There's JEC testimony from Fed Chair Yellen, while the Fed also releases its Beige Book. The earnings calendar remains light, featuring reports from PVH Corp., Royal Bank of Canada, Synopsys, Tiffany, and Workday.