Treasury Market Outlook: Treasury yields have inched higher
Treasury Market Outlook: Treasury yields have inched higher, along with JGBs and core EGBs, as global equities rally. The front end of the Treasury curve is under-performing slightly ahead of today's $34 B 3-year Treasury auction. The 2-year rate is up 0.8 bps at 2.653%, with the benchmark 10-year up 0.6 bps to 2.945%. Weakness in Japan's JGB, up 0.9 bps to 0.102%, provided the initial bearish momentum. Subsequently, the Bund has edged up 0.8 bps to 0.394%, while the Gilt is 0.6 bps higher at 1.308%. Meanwhile, the Australian 10-year rate plunged 6.9 bps to 2.65% after the RBA left rates unchanged but cut its inflation forecast. Stocks have climbed as earnings top trade angst. China's CSI 300 rallied 2.9%, with the Nikkei up 0.69%, even as the yen firmed after another story about the BoJ considered hiking rates this year. The DAX has climbed 0.9%, with the FTSE up 0.84%, while U.S. futures are pointing to a firmer open. Italy's MIB has gained over 1% as political jitters ease. In overnight data, German industrial production dropped 0.9% in June. In Japan, June income improved to -1.2% y/y from -3.9% y/y. The U.S. the Treasury sells 3-year notes. There's also June JOLTS and consumer credit data. Earnings reports include Disney.