Treasury Market Outlook: Treasury yields are down fractionally
Treasury Market Outlook: Treasury yields are down fractionally, but off their lows, as are most European rates. Asian yields closed in the green too. The 10-year is off 0.7 bps at 2.94%, with the 2-year down 0.3 bps to 2.643%. The Bund has dropped 0.7 bps to 0.385%, and the Gilt is off 0.3 bps at 1.27%. Peripherals are leading, however, with the Italian note posting a 3.3 bps decline as political angst eased slightly. The JGB closed 0.9 bps lower at 0.064% as worries over a BoJ tweak eased. Stocks are struggling with most indexes in the red, as are U.S. futures. Trade worries continue to overshadow mostly positive earnings news, though indications of rising costs due to tariffs are weighing. The German Ifo slipped to 101.7 from 101.8, and U.K. CBI retailing confidence fell back to 20, but both less than forecast. All eyes will be on the Trump and Juncker meeting as the latter makes a last ditch effort to prevent car levies. The calendar also has new home sales and weekly oil inventories. The MBA reported a 0.2% dip in mortgage applications for the July 20 week. Today's earnings slate is massive with many key reports across sectors.