Treasury Market Outlook: Treasuries are a little weaker
Treasury Market Outlook: Treasuries are a little weaker along with European bonds, while U.S. equity futures are firmer along with European bourses, after President Trump suggested an attack on Syria may not be imminent. Treasury yields are up just over 1 bp with the 2-year at 2.319% and the 10-year at 2.795%. European rates are up too with the Gilt leading, having risen 3.1 bps to 1.418%. The Bund is up 1.5 bps at 0.510%. Some unwinding of geopolitical tensions, for now, has seen U.S. equity futures bounce with the Dow showing a triple digit gain after yesterday's 218 point decline. European bourse are higher with better than 0.4% increases in the FTSE and DAX. Asian share markets closed lower, paced by the 1% drop in China's CSI 100 after China's Ministry of Commerce said it is prepared for any escalation in trade tariffs, and that it would fight back without any hesitation. A spokesman also emphasized it would be misleading to view President Xi's speech earlier in the week as being a concession to the U.S., but rather reflected a long-held strategy to open up its economy. Disappointing Eurozone production data was overlooked. Geopolitics will remain a focal point near term and upcoming data will have minimal impact. On tap are weekly jobless claims and March import and export prices. The Treasury auctions $13 B of re-opened 30-year bonds and announces 5-year TIPS. The Fed's Kashkari speaks in a moderated Q&A. The only larger-cap earnings report comes from BlackRock, but several banks are due tomorrow to really kick off the Q1 earnings season tomorrow.