Treasury Market Outlook: Treasury yields are down slightly
Treasury Market Outlook: Treasury yields are down slightly, but have edged off of earlier lows, tracking the upswing in European rates. The 2-year yield is off 0.2 bps at 2.661%, with the 10-year down 0.9 bps at 2.87%. The 10-year Bund and Gilt are now 0.8 bps higher at 0.386% and 1.457%, respectively. Equities are mixed with the Dow future pointing to a slightly firmer open, while European bourses have mostly given up gains and are lower with the FTSE down 0.46% to lead the slide in core markets as the pound firmed and as Brexit fears weighed after the UK and the EU agreed to push out a deal date to November. The DAX is off 0.02% after confidence sagged. The Nikkei closed with a 0.15% gain, while the CSI 300 fell 0.4% amid lack of progress on a trade deal. The U.S. calendar includes the second look at Q2 GDP, July pending home sales, and weekly oil inventories. The MBA reported mortgage applications fell 1.7% in the August 24 week. The Treasury auctions $31 B of 7-year notes and $17 B of re-opened 2-year FRNs. The only larger-cap earnings report comes from Brown Forman.