Treasury Market Outlook: yields are higher
Treasury Market Outlook: yields are higher, led by Europe after the ECB minutes and stronger than expected PMIs. The Bund has now cheapened over 4 bps to -0.631% after the minutes showed diverging opinions on the need for a comprehensive package of easing measures. The Gilt is 3.4 bps higher at 0.508%. Treasuries are outperforming with the 10-year up 1.9 bps to 1.608%. Stocks are mostly firmer, albeit modestly so, with the DAX having climbed back into the green, with the Dow future up 0.15% as the markets look for help from Chair Powell tomorrow. Data today's includes the preliminary August PMIs , July leading indicators and weekly jobless claims. The Treasury announces 2-,, 5-, and 7-year notes, and auctions $7 B of re-opened 30-year TIPS. KC Fed's Economic Symposium Challenges for Monetary Policy kicks off after the close, with markets looking ahead to Friday, when Fed chair Powell will give the keynote address. The earnings calendar features reports from CIBC, Hormel Foods, HP, Intuit, and Ross Stores.