Treasury Market Outlook: Treasury yields are fractionally lower
Treasury Market Outlook: Treasury yields are fractionally lower, along with JGBs, in contrast to cheaper European rates as they reopen from the long Easter weekend. The 10-year Treasury is 0.5 bps lower at 2.585%, with the JGB 0.7 bps richer at -0.042%. The Bund and Gilt are nearly 3 bps higher at 0.048% and 1.224%, respectively. Equities are mixed as well, with the Dow mini posting a modest gain after better earnings, including P&G and United Technologies, while the S&P 500 is slightly weaker, as are European bourses, though the FTSE is rallying. Chinese shares finished in the red in cautious trading, and the Nikkei was up 0.19%. There wasn't a lot of news. The official Xinhua news services reported a policy meeting chaired by President Xi that monetary policy will be "neither too tight, nor too loose," was interpreted as a sign that Beijing will slow the pace of policy easing. Oil prices remain firmer. In the U.S., the onslaught of earnings continues. Data includes March new home sales, the February FHFA home price index, the April Richmond Fed index, and weekly chain store sales. The Treasury auctions $40 B of 2-year notes and $26 B in 52-week bills.