Treasury Market Outlook: Treasury yields are several basis points higher
Treasury Market Outlook: Treasury yields are several basis points higher as demand for risk boosts equities globally. The 2-year and 10-year notes are up 3 bps at 2.193% and 2.933%, respectively. The UK Gilt is 4.6 bps firmer at 1.685% to lead European rates, while the German Bund is up 3.4 bps to 0.785%. Stocks in Asia and Europe are 0.5% to 2% high after the 1% climb in the Dow yesterday, and the Dow future is pointing to a positive opening. Japanese machinery orders disappointed, falling 11.9% in December. The Eurozone trade surplus widened in December as exports rose 1.0% y/y, while imports increased 2.5% y/y. It's a very busy day in the U.S. with the February Philly Fed index, the February Empire State index, January industrial production, capacity utilization, January PPI, weekly jobless claims, the February NAHB housing market index, and December capital flows. The Treasury announces 2-, 5-, and 7-year notes (all expected to be increased), along with reopened 2-year FRNs, and will auction $7.0 B of 30-year TIPS. Today's earnings calendar features reports from Aegon, Andeavor, Arista Networks, CBS, Con-Ed, Encana, EQT, Fortis, Global Payments, Huntington Ingalls, Incyte, Liberty Global, Shopify, TransCanada, Waste Management, and Yandex.