Treasury Market Outlook: yields have edged up as equities bounced
Treasury Market Outlook: yields have edged up as equities bounced overnight. Treasury rates are up with the 10-year 2.1 bps higher at 3.17%, while the 2-year is up 1.7 bps to 2.865%. Core European rates are mixed with the Gilt 1.5 bps lower at 1.656%, while the Bund is 0.7 bps firmer at 0.523%. Italy's note is 1.6 bps lower after lawmakers there approved a fiscal plan. The JGB finished 0.4 bps higher at 0.140%. Asian equities rallied to help underpin global stocks, paced by a 2.1% jump in the Hang Seng and a 1.5% gain in the CSI. Spillover has supported more modest gains in European bourses with the FTSE up 0.7% and the DAX 0.3% higher. U.S. futures are pointing to a near 400 point opening in the Dow. In overnight data, China's trade surplus widened as exports and imports posted gains of over 14% y/y. Stronger than expected Eurozone production was supportive, while Draghi warned of Brexit risks. In the U.S. there's data on September import and export prices, and preliminary October University of Michigan consumer sentiment, alog with the September Treasury budget. Fedspeak includes Evans, Bostic, and Quarles. Earnings include Citigroup, First Republic Bank, and Wells Fargo. JP Morgan Chase and PNC Financial announced beats.