Treasury Market Outlook: yields are sharply lower globally
Treasury Market Outlook: yields are sharply lower globally as equities extend declines. The 2-year Treasury is down 3.1 bps to 2.518%, while the 10-year has dropped 3.8 bps to 2.878%. The Gilt rate is off nearly 5 bps to 1.270%, while the Bund has slid 3.7 bps to 0.357%. The JGB finished 0.7 bps lower at 0.024%. President Trump warned he could impose tariffs of 10% on $200 B in imports, and another $200 B after that if there is retaliation. That threat is weighing heavily on investor sentiment, led by China's CSI 300 which reopened 3.5% lower following Monday's holiday. The DAX is down another 1.3% while the FTSE has fallen 0.5%. And U.S. futures are pointing to a better than 1% decline. Oil prices are selling off and WTI is down 1.5% to $64.84. Meanwhile, Draghi stressed a cautious approach. The Ifo Institute trimmed its 2018 growth forecast for Germany to 1.8% from 2.6%. Today's U.S. slate is ight with May housing starts and weekly chain store sales. The Fed's Bullard speaks at the ECB's conference in Sintra. The earnings calendar is light, though will feature reports from FedEx, and Oracle.