Treasury Market Outlook: Treasury yields are lower on bullish momentum
Treasury Market Outlook: Treasury yields are lower on bullish momentum from European sovereigns and as stocks decline. The 10-year rate has fallen 1.3 bps to 3.148%, with the 2-year down 1.2 bps at 2.84%. Gilts are leading the drop in EGB rates amid fresh Brexit worries after talks broke down over the weekend, with the yield down 3.1 bps to 1.599%. The Bund has dipped 0.6 bps to 0.490% on ongoing political jitters in Europe. The JGB closed down 0.8 bps to 0.132%. Equities are mixed. Asian markets closed with declines of better than 1%, with the Nikkei off 1.8%7%. Core European bourses have edged off of earlier lows and the DAX is up 0.2% while the FTSE is fractionally higher. U.S. futures point to a weak opening. In the U.K. there are signs PM May's "deal" would face insurmountable opposition at home. In Germany, Merkel looks to lose her coalition allies after the weekend elections in Bavaria. ECB President Draghi added to fears over rising rates, saying that a sudden spike in interest rates are the greatest risk for global markets. Meanwhile, oil prices are climbing on Saudi tensions. U.S. markets will remain focused on equities, while data hits with September retail sales, the October Empire State index, August business inventories, and the September Treasury budget. Today's earnings calendar has just Bank of America.