Treasury Market Outlook: yields are moderately cheaper
Treasury Market Outlook: yields are moderately cheaper, but off earlier highs, while stocks are mixed. Draghi stepped up calls for fiscal stimulus as the economic outlook worsened. Meanwhile, better than feared Chinese PMIs were overshadowed by worries the U.S. might restrict access to U.S. financial markets even though U.S. Treasury said over the weekend that "the administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time." German retail sales and jobless numbers beat expectations. The 10-year Treasury rate is up 1.2 bps at 1.692% versus 1.71%, and the 2-year is up 0.6 bps at 1.638% versus 1.654%. The Bund is 0.8 bps higher at -0.57%. The Gilt is the exception,at 0.492%, 0.3 bps richer. The JGB finished up 2.2 bps at -0.226%. U.S. equity futures are about 0.25% firmer, with the Euro Stoxx 50 and the MIB are also marginally higher, while the DAX and FTSE have given up gains and are fractionally lower with the latter hurt by a stronger pound. Japan's Topix closed over 1% lower, with the CSI off 0.99%. In the U.S., this will be an important week of data and Fedspeak, culminating with the September jobs report, though today's calendar is light with just the September Chicago PMI and the September Dallas Fed index.