Treasury Market Outlook: Treasury yields have edged higher
Treasury Market Outlook: Treasury yields have edged higher as the market unwinds recent flight to safety trades. Rates are up just over 2 bps to 2.85% on the 2-year and 3.128% on the 10-year. European sovereigns are up from overnight lows, but are still richer on the session. The Gilt is 1 bp lower at 1.443% and the Bund is 0.5 bps lower at 0.389%. Italy is outperforming with the BTP rate down 8 bps at 3.519%. The JGB declined 1.6 bps to 0.105%. Risk appetite has picked up in Europe, which shrugged off the dive on Wall Street yesterday, and which spilled over to Asian markets today. Yet, worries over a global slowdown, coupled with Italian jitters, have European markets looking for dovish signals from Draghi at today's ECB. The Norge Bank left policy unchanged, as expected. The German Ifo was weaker than expected, with a plunge in expectations. Earnings remain prominent in the U.S. today. Data includes the September durables report, the September advance goods trade numbers, and advance wholesale and retail inventories, weekly jobless claims, and the September pending home sales index. The Treasury auctions $31 B of 7-year notes. For Fedspeak, there is VC Clarida and Mester.