Treasury Market Outlook: Treasuries are a little cheaper
Treasury Market Outlook: Treasuries are a little cheaper, along with EGBs after stronger than expected German Ifo data, while Asian bond yields closed several bps richer. The 30-year and 10-year Treasuries are 3.1 bps and 2.7 bps higher at 2.904% and 2.466%, respectively. The Gilt is up 3 bps as well to 1.040%. The is 1.1 bps higher at -0.007% after closing at -0.017% on Friday, the lowest since 2016. Equities are still mired with losses following Friday's plunge on Wall Street amid worries over growth and the Treasury yield curve inversions. Chinese shares were over 2% lower, with the Nikkei down 3.0%. European bourses have edged off of overnight nadirs after the German data, with the DAX fractionally lower. The Dow and S&P 500 futures are about 0.1% to 0.2% lower. In overnight news, Japan's all-industry index slid 0.2%, not as bad as forecast. Fed dove Evans, a voter said the flatter yield curve is natural in this environment. He also thinks downside risks predominate and the FOMC might have to ease again if they take hold. Meanwhile, Harker (not a voter) said neutral might be one or two moves away. Brexit will be a focal point near term with PM May hoping for another vote. There's not much on the U.S. slate today with just the March Dallas Fed index and the February Chicago Fed national activity index. Red Hat is the only large cap earnings report. Fedspeak will be solid through the week and there's a ton of supply to be auctioned. Other data releases this week include revised GDP, income, PCE, new home sales, housing starts, consumer confidence, and Case-Shiller home prices.