Treasury Market Outlook: Treasuries are unchanged to fractionally cheaper
Treasury Market Outlook: Treasuries are unchanged to fractionally cheaper, along with core European rates. The 10-year Treasury yield is up 1.1 bps to 2.565%, with the 2-year 0.4 bps higher at 2.396%. The 10-year Gilt and Bund yields are flat at 1.217% and -0.001%, respectively. Stocks are in rally mode, led by a better than 2% surge in China's indexes. The DAX is leading the way in Europe with a 0.57% gain after stronger than expected German ZEW data (though the current conditions component wasn't as good as projected), with U.S. equity futures 0.5% firmer too. Limiting the uptick in EGB rates after the ZEW numbers as a Reuters source story suggested that a sizable minority at the ECB doesn't believe in a 2H recovery. Though market confidence may be improving on hopes of a U.S.-Sino trade deal and reduced Brexit jitters, the real German economy continues to struggle. Meanwhile, the UK unemployment rate was steady at 3.8%. Today's U.S. slate has March industrial production, the April NAHB housing market index, and weekly chain store sales. The Fed's Kaplan speaks at a community forum. Today's earnings calendar features reports from Bank of America, BlackRock, Comerica, CSX, Interactive Brokers, IBM, Johnson & Johnson, Netflix, Prologis, and Wipro.