Treasury Market Outlook: Treasury yields are sharply lower
Treasury Market Outlook: Treasury yields are sharply lower on risk aversion, as the markets worry about a prolonged trade impasse. The 2-year yield is nearly 5 bps richer at 2.217%, with the 10-year off over 4 bps at 2.426%, are outperforming more modest declines in core European bonds. The Gilt is 1.2 bps lower at 1.120%, with the Bund off 0.9 bps at -0.055%. The JGB closed 0.1 bps higher at -0.058%. Global stocks have dropped led by better than 1% declines in U.S. futures and Chinese shares. The Nikkei finished 0.7% lower. European bourses are about 0.5% (CAC 40) to 0.75% lower (DAX), with the FTSE little changed. Trade was fears have taken hold of the markets with the failure of the U.S.-Sino talks on Friday, while Germany is worrying about potential tariffs on its key auto sector. Today's U.S. calendar is thin with just Fedspeak from Rosengren and VC Clarida at a "Fed Listens" event. The earnings calendar features reports from Take-Two Interactive, and Tencent Music. Meanwhile, the markets will look ahead to retail sales, industrial production, and trade price reports.