Treasury Market Outlook: Treasury rates continued their ascent overnight
Treasury Market Outlook: Treasury rates continued their ascent overnight even as stocks decline. The long end is underperforming on the curve with the 30-year bond up 4.4 bps to 3.380%. The 10-year is 3.4 bps higher at 3.215%, with the 2-year up 1.2 bps at 2.884%. The 10-year hasn't been over 3.2% since 2011. European rates are broadly higher too, led by the 7.4 bp surge in the Gilt to 1.646%. The Bund is up 5.8 bps to 0.53%. And, the JGB surged 2.1 bps to 0.149%. The jump in yields is weighing on equities, along with expectations for Fed rate hikes. U.S. equity futures are lower, while European bourses are down 0.2% to 0.9%. The FTSE has fallen 0.9% with Brexit worries also factoring in. The DAX is off only 0.2% after reopening from Wednesday's holiday. There wasn't much data overnight. German macine orders picked up but the construction PMI dipped. In the U.S., the markets await the September nonfarm payrolls report, but first there's data today on weekly jobless claims, August factory orders, a Challenger layoff figures. The Treasury announce 3-year notes, along with re-opened 10-year notes and 30-year bonds. The Fed's Quarles speaks on community banking.