Treasury Market Outlook: Treasury yields are lower
Treasury Market Outlook: Treasury yields are lower and are outperforming core sovereigns after more dovish Fedspeak yesterday. A more circumspect tone in equities is also underpinning. The 2-year yield is down 2.9 bps at 2.547%, while the 10-year is off 2.7 bps to 2.715%. The Bund is off 0.7 bps at 0.243% but off earlier lows of 0.228%. The Gilt is 1.6 bps higher at 1.288%. Italy's BTP is 3.5 bps lower at 2.85%. The JGB closed the week out at 0.005%, down 0.5 bps. Stocks are mixed. U.S. futures and European bourses have erased earlier gains and are weaker as the U.S. shutdown and global growth risks weigh, while the Nikkei finished with a 0.97% gain, and the CSI 300 rose 0.7%. The U.S. calendar remains thin with just December CPI today. There is no Fedspeak scheduled, and the only larger-cap earnings report comes from Infosys. Earnings season begins in earnest next week. Meanwhile, the auctions are now complete and that could give Treasuries a breather.