Treasury Market Outlook: Treasury yields have extended slightly higher
Treasury Market Outlook: Treasury yields have extended slightly higher with the 10-year up 2 bps to 2.889%, and the 2-year up 1 bp to 2.618%. Fed Chairman Powell's testimony left intact the gradual rate hike trajectory. Bund yields have ticked up 1 bp too, alongside Treasuries, to 0.347%, although the Gilt has declined 0.8 bps to 1.216% following weak retail sales readings. Stocks are mostly lower after Asia closed in the red. The CAC 40 and DAX are down 0.5% and 0.4%, respectively, as investors weigh trade tensions and central bank policies against earnings, and for today, tariff worries and rate hike fears are winning. U.S. equity futures point to a lower opening as well. Earnings will be a focal point today with a heavy calendar. Economic reports include July Philly Fed index, weekly jobless claims (data coincides with the BLS survey week, and June leading indicators. The Treasury auctions 10-year TIPS and announces 2-, 5-, and 7-year notes. The Fed's Quarles speaks on alternative reference rates.