Treasury Market Outlook: bonds weakened globally
Treasury Market Outlook: bonds weakened globally amid a mixed performance in equities. Treasury yields are up 2 to 3 bps with the 10-year 2.6 bps higher to retest 3.11%. The 2-year is up 2.2 bps to 2.839%, and the bond has risen 3 bps to 3.36%. Core European rates are fractionally cheaper with the Gilt up 0.7 bps to 1.404%, while the Bund has inched up 0.2 bps to 0.377%. Peripherals are underperforming, paced by an 8 bps jump in Italy's BTP to 3.41%. The JGB surged 1.4 bps to 0.110%. U.S. equity futures are bouncing and are modestly firmer after yesterday's late sell-off on tariff worries, but are off their best levels as European bourses fade. European indexes are now lower after disappointing growth data with weaker than expected Eurozone Q3 GDP growth of just 0.2%. Italy's GDP also stagnated with 0.8% growth, which adds to budget pressures. Additionally, Eurozone ESI economic sentiment fell back, while German state inflation picked up. These factors overshadowed strong earnings from BP and Volkswagen. Meanwhile, Asian shares were firmer, shrugging off Monday'a tariff news. U.S. earnings will dominate today's calendar. Data is light with just October consumer confidence, the August Case-Shiller home price index, and weekly chain store sales.