Treasury Market Outlook: European yields are a little richer
Treasury Market Outlook: European yields are a little richer ahead of the ECB's policy announcement where more stimulus is expected. The Bund is down 2.5 bps at -0.590% and the Gilt is 0.1 bp lower at 0.633%. The BTP is underperforming, however and is 0.9 bps higher at 0.975%. Treasury rates are about 1 bp lower with the 2-year at 1.668% and the 10-year at 1.721%. Equities are slightly firmer, with the exception of the FTSE and CAC 40 which are registering modest losses. China's CSI 300 paced overnight gains, rising 1% amid ongoing hopes for a U.S.-Sino trade deal with hopes of a softer stance in the Trump camp and goodwill gestures from both China and the U.S. have rekindled optimism. Yesterday President Trump delayed the next round of U.S. tariffs by about two weeks, after China published an exemption list. The Hang Seng underperformed and dropped -0.3%, after the city's exchange takeover bid for London Stock Exchange Group. Also of note overnight, Turkey's central bank slashed its key rate by 325 bps. The U.S. calendar features August CPI, weekly jobless claims, and the Treasury budget. The Treasury reopens $16.0 B in 30-year bonds and announces re-opened 10-year TIPS. Earnings include Broadcom and Kroger.