Treasury Market Outlook: Treasury yields are lower in risk-off trades
Treasury Market Outlook: Treasury yields are lower in risk-off trades, but off earlier lows, as U.S. markets reopen from Monday's holiday. European and Asian rates are down as well. The 10-year Treasury is 3 bps lower at 2.755%, with the 2-year off 2 bps to 2.593%. The German Bund is down 0.8 bps at 0.246%, though the Gilt is 0.4 bps higher at 1.323%. The JGB finished 0.5 bps lower at -0.012%. Equities have sold off after growth warnings from the IMF and major CEOs of global corporations, who are gathered in Davos. Brexit remains a major uncertainty, as does the U.S. government shutdown. The German ZEW expectations index was better than expected at -15.0, but details were less than encouraging. China's CSI led the ovenright slide in equities, dropping 1.3%, while the Nikkei, DAX, and FTSE are about 0.4% lower, with the Dow future down 0.58%. Earnings will be a focal point. J&J, Traverlers, SBD, Halliburton, and JB Hunt have beaten. Several more announcements are due today. Data includes existing home sales and the Richmond Fed index for January.