Treasury Action: yields continue to rise
Treasury Action: yields continue to rise, and again with the spark coming from EGBs on Brexit hopes which have boosted global equities. Also supporting strength in risk appetite has been better than expected news on bank earnings with further signs of good consumer demand. The Gilt cheapened over 7 bps to test 0.721%, marking the highest rate since the 0.762% close on September 13. The Bund finished 3.9 bps higher at -0.420%. The 10-year Treasury is up over 2 bps to 1.759%. Brexit hopes have been the focus today with officials on both sides suggesting some optimism for a deal. That, combined with the "phase one" truce on U.S.-China tariffs have extended Animal Spirits and lifted equities. The 1.15% gain in the DAX has led the way in core markets, with the S&P 500 following with a 1.07% gain. Adding to the bullish momentum have been strong earnings too, especially from banks as the Q3 season begins.