Treasury Market Outlook: Treasury yields are higher
Treasury Market Outlook: Treasury yields are higher and the rise in the 10-year rate over 3% again has pressured Asian and European sovereigns, even as equities struggle. Rates are at some of the highest levels in four years, in part on the weight of supply. The 10-year Treasury is up 1.1 bps at 3.013%, with the 2-year little changed at 2.548%. The German Bund is underperforming in Europe, also 1.3 bps higher at 0.621%. Japan's JGB finished up 0.7 bps at 0.044%, though Australia and Thailand were the worst performers as yields jumped over 5 bps. Equities are mixed. Core markets are mostly lower but off their nadirs. Chinese production climbed to a 7.0% y/y pace. Eurozone Q1 GDP growth was confirmed at 0.4%. German May ZEW investor sentiment stabilized, while Q1 GDP growth slowed to 0.3%. Today's U.S. slate picks up and is highlighted by April retail sales. There's also the May Empire State index, March business inventories, and weekly chain store sales. The Dallas Fed's Kaplan speaks on outlook for energy markets. Fed nominees Clarida and Bowman testify before Senate Banking Committee. There are no larger-cap earnings reports due today.