Treasury Market Outlook: yields are little changed to slightly higher
Treasury Market Outlook: yields are little changed to slightly higher versus Thursday closes, having drifted up slightly from Asian lows as equities gain more ground. Unwinding of tariff fears have helped the tone in global stocks, while investors look toward strong earnings reports. Meanwhile, the threat of military action against Syria keeps trading cautious. The front end of the Treasury curve is underperforming with the yield up marginally at 2.35% from an overnight low of 2.33%. The 10-year is unchanged at 2.836% versus 2.81%. A flurry of futures sales in European sovereigns saw cash yields edge up and added to the softer tone in Treasuries. The Bund rate is 0.9 bps higher at 0.52%. U.S. equity futures are pointing to moderate opening gains, though trading is consolidative. The DAX is leading European bourses higher with a 0.75% gain. Much of the focus today will be on the start of earnings as several big banks have reported beats so far. The economic calendar is light with April preliminary consumer sentiment and February JOLTS. Fedspeak returns with Rosengren, Bullard, and Kaplan.