Treasury Market Outlook: Treasury yields have dipped lower
Treasury Market Outlook: Treasury yields have dipped lower, following the declines in Asian and European sovereign rates as equities come under pressure. The short end is leading the way in Treasuries with the 2-year down 2 bps to 2.53%, while the 10-year is off 1.1 bps to 2.70%. The Bund has slid 2.3 bps to 0.226%, with the Gilt off 1.1 bps to 1.246%. The JGB finished 0.8 bps lower at 0.010%. Stocks have dropped as U.S.-China trade hopes fade following a rather nondescript communique. The ongoing U.S. government shutdown and Brexit risks are also weighing The Nikkei closed 1.29% lower. The DAX and FTSE are off about 0.3%, as is the Dow future. There wasn't much news overnight, but French production fell 1.3% in November. The U.S. data calendar is thin with just weekly jobless claims as the November wholesale figures are delayed. But, the slate also includes a busy Fedspeak agenda featuring Chairman Powell speaking to Economic Club of Washington, along with Barkin, Bullard, Evans, Kashkari, and VC Clarida who will be at the Money Marketeers in New York. The Treasury auctions $16 B of re-opened 30-year bonds and announces 10-year TIPS.