Treasury Market Outlook: Treasury yields are lower
Treasury Market Outlook: Treasury yields are lower, as are core rates in Europe, as equities come under pressure. The 10-year rate has dropped 2.7 bps to 2.82%. The 2-year rate is about 1 bp lower at 2.06%. The German Bund is off 2.4 bps at 0.727%. Japanese markets reopened higher initially after Monday's holiday, but gains were unwound and both the JGB and the Nikkei closed with modest losses, while the yen rose to a 5-month high. The UK Gilt yield is higher at 1.606% after a firmer than expected CPI report. U.S. equity futures look to open lower with the Dow off triple digits, with European bourses down about 0.5%, as volatility remains intact. There isn't much data on tap today. The NFIB small business optimism index rose 2 points to 106.9, one of the highest levels in the long history of the report going back to 1974. The only other data today are chain store sales. Fed hawk Mester, a voter this year, will speak on monetary policy. The earnings slatr id lightening.