Treasury Market Outlook: Treasury yields have edged up
Treasury Market Outlook: Treasury yields have edged up, along with Gilt and Bund yields, as risk appetite improving. After the dive in yields yesterday, bonds were ripe for profit taking. Comments from President Trump that Huawei restrictions could be addressed in a trade deal provided some hope of an eventual agreement, while news of UK PM May's resignation for June 7 (after President Trump's state visit) also supported. The Gilt is the underperformer, having cheapened 1.9 bps to 0.968%. The Bund and 10-year Treasury are about 0.8 bps higher at -0.114% and 2.326%. Peripherals are surging with the Italian note nearly 8 bps lower at 2.556%. The JGB closed down 1.7 bps at -0.085% with some spillover from Thursday's bond rally. European bourses have rallied some 0.7% to 1.6%, while U.S. futures are about 0.6% firmer. Now that PM May has been ousted, the Conservative Party will start its leadership contest in the June 10 week. Today's U.S. calendar is light with just April durables data. The bond market closes early ahead of the long Memorial Day weekend.