Treasury Market Outlook: bond yields are cheaper
Treasury Market Outlook: bond yields are cheaper, while U.S. equities most European bourses are posting modest gains after a mixed session for Asian shares. The Gilt is underperforming core sovereigns, up 2.5 bps at 1.241%, with the Bund up 2.3 bps at 0.087% (there was strong demand for the 30-year auction). The 10-year Treasury is 1.8 bps higher at 2.60%. U.S. equity futures and European shares are 0.1% to 0.3% firmer. Chinese markets closed with modest gains despite bullish data on Q1 GDP, production and retail sales. There were a variety of cross currents. Along with the Chinese data, Eurozone inflation data were a little weaker than expected, which capped bond rates, while trade and current account numbers showed diverging trends. Germany cut its growth forecast to 0.5% for the year. U.S. futures are adding to gains after Morgan Stanley beat, after disappointing Netflix news late yesterday. Today's U.S. slate has February trade, and wholesale data, and weekly oil inventories. The MBA reported mortgage applications fell 3.5% in the April 12 week. There is the Beige Book for the April 30-May 1 FOMC, along with Fedspeak from Harker and Bullard, with NY Fed's senior VP Lorie Logan at the Money Marketeers after the close. There are a number of earnings reports still with Abbott Labs, Bank of New York Mellon, E*TRADE, Ericsson, Kinder Morgan, Pepsico, Textron, and U.S. Bancorp.