Treasury Market Outlook: bonds were mixed overnight, while equities were mostly lower
Treasury Market Outlook: bonds were mixed overnight, while equities were mostly lower. Treasury rates cheapened but have edged off of highs. The benchmark 10-year is 0.4 bps higher at 2.849% after hitting 2.86% earlier, with the 2-year flat at 2.71%, but tested 2.723%. Bund yields are fractionally higher at 0.249%, while Gilt rates have dropped 4 bps to 1.220%, Italy is down 2.9 bps, and Asian sovereign rates declined with the JGB closing down 2.2 bps to 0.025%. Equities are lower, following Asia's lead where China's CSI dropped 1.16%, while the Nikkei tumbled 2.12%. European bourses are off about 0.5%, with the exception of the FTSE which is 0.2% higher. U.S. futures are down about 0.3%. News has kept the markets shaky. There are reports that PM May will postpone the Brexit vote to avoid a crushing defeat. In China, November data showed slowing in trade and the pace of inflation, while damage from the Huawei incident has continued to cast a long shadow. And Japan's GDP was much weaker than expected. Today's U.S. calendar includes just October JOLTS job openings data. There is no Fedspeak scheduled, and there are no larger-cap earning reports due.