Treasury Market Outlook: yields are up several basis points
Treasury Market Outlook: yields are up several basis points, in tandem with the general selloff in bonds. Trading is getting off to a sluggish start after the holidays, with Japanese markets closed through Wednesday. The 2-year yield has risen to 1.899% after finishing the year at 1.88%. The 10-year is at 2.433% compared to the 2.405% 2017 close. EGB rates are higher after some hawkish comments from the ECB's Coeure and Mersch who hinted QE will end this year. Along with the bearish tenor in bonds, the Treasury market has to contend with a record $160 B in bill auctions today. Meanwhile, U.S. equity futures are in the green in contrast to declines in in Europe. News overnight was mixed with a solid Eurozone PMI reading, offset by a disappointing U.K. print. Along with the bills, today's calendar includes only the final Markit PMI. However, over the rest of the week there are a number of key reports, including the manufacturing and services ISMs, the ADP private employment survey, vehicle sales, and finishing with December nonfarm payrolls on Friday.