Treasury Market Outlook: bond yields are a little richer amid cautious trading
Treasury Market Outlook: bond yields are a little richer amid cautious trading, while equities consolidate after Wall Street hit 6-month highs. Treasury rates are over 2 bps lower with the 10-year at 2.50% and the 2-year at 2.315%. The French OAT is outperforming in Europe with the yield down 3.3 bps to 0.36%, with the Bund and Gilt off 1.7 bps to -0.013% and 1.077%, respectively. The JGB was down 1.3 bps to -0.068% at the close. Stocks are mixed with the Shanghai Comp rallying 0.94%, with the Nikkei 0.05% higher. The DAX has firmed 0.15% while the FTSE is 0.4% lower. The Dow futures is flat, and the S&P 500 is fractionally cheaper. German manufacturing orders dropped 4.2% in February to help support the risk-off tone. German institutes more than halved growth forecasts to 0.8% from 1.9%, and Italy cut its projection, not surprisingly, to 0.1% from 1.0%. And India's RBI eased rates 25 bps to 6.00% as widely expected. Odds for a "soft" Brexit are looking more likely. The U.S. calendar is light side heading into Friday's nonfarm payroll release. Weekly jobless claims feature today, along with March Challenger layoff figures. The Treasury announces 3-year notes, reopened 10-year notes, and reopened 30-year bonds. Fedspeak includes Philly Fed's Harker and Cleveland Fed's Mester. Neither are voters. The only larger-cap earnings report comes from Constellation Brands.