Treasury Market Outlook: Treasury yield dipped
Treasury Market Outlook: Treasury yield dipped, in conjunction with core European bonds, as Italian jitters over the debt write-off resurfaced, and amid uncertainties over whether or not Britain will stay in the EU customs union. The 10-year Treasury note has fallen modestly to 3.085% after hitting an overnight high of 3.12%. Concurrently, the Bund rate has dropped to 0.59% from a peak of 0.644% earlier, and after closing over the 0.60% level over the past three sessions, while the Italian rate has spiked over 5 bps higher. The Gilt is now up 3 bps to 1.53%. Meanwhile, the markets are keeping a close eye on the Middle East. Equities are mixed with U.S. futures pointing to a lower open, while European bourses are slightly higher but are off their best levels. In other news WTI crude climbed over $72. Today's calendar will be monitored amid a string of solid reports. Today's slate includes the May Philly Fed index, weekly jobless claims, and April leading indicators. The Treasury reopens 10-year TIPS and announces 2-, 5-, and 7-year notes and 2-year FRNs. There is Fedspeak from Kashkari and Kaplan.