Treasury Market Outlook: global yields are in decline
Treasury Market Outlook: global yields are in decline, but off overnight lows, as equities have headed south after weak Chinese trade data (exports -4.4% y/y, imports -7.6% y/y, the worst since 2016) and slumping Eurozone production (-1.7% m/m) exacerbated global growth worries. Brexit angst is also weighing. Trading was thinned by a holiday in Japan. The belly of the Treasury curve is leading the way with the 5-year nearly 4 bps lower at 2.492%. The 10-year is of 3.4 bps at 2.669%, with the 2-year 2.7 bps lower at 2.514%. The Gilt is pacing European bonds with a 3.0 bp slide to 1.255%. The Bund is 2.6 bps lower at 0.209%. The Dow future has dropped 0.8%, and the FTSE is down 1.06%, while the DAX is down 0.7%. The CSI closed with a 0.87% loss. The U.S. calendar is empty today, while the government shutdown will thin the week's slate of releases, with retail sales in jeopardy. There is no Fedspeak today after last week's heavy slate, however, several Committee members will be at the podium through the week. Earnings will be a major focal point as the earnings calendar kicks off in earnest, though today's larger-cap reports are limited to just Citigroup.