Treasury Market Outlook: trading was pretty quiet overnight
Treasury Market Outlook: trading was pretty quiet overnight, but some of yesterday's trade angst was soothed on news the Trump administration granted an extension for U.S. companies to do business with blacklisted Chinese telecoms group Huawei, along with news that Japan passed a limited trade deal with the U.S. (albeit leaving auto tariffs still in question). Bond yields are mostly cheaper, but are off earlier highs. Treasuries are mixed with the short end underperforming. The 2-year yield is up 0.6 bps at 1.604%, while the 10-year is 0.2 bps lower at 1.81%. The Bund is 0.5 ps cheaper at -0.333%. The Gilt is 0.5 bps richer at 0.743%. The JGB finished -0.3 bps lower at -0.098%. Equities are generally in rally mode, with U.S. futures about 0.2% firmer. The FTSE has climbed 1.16%, with the DAX 0.97% higher, while Chinese shares and Hong Kong (+1.55%) were up solidly. The Nikkei underperformed with a 0.5% decline. Also supporting risk-on flows were better than expected European car sales and an improvement in the U.K. CBI industrial trends survey, along with dovish minutes from the RBA. Meanwhile, the BoJ's Kuroda said there is room for further easing, but added that there are limits. The U.S. slate is very thin with just October housing starts and weekly chain store sales. There is Fedspeak from Williams. Earnings include Home Depot, Medtronic, TJX, Transdigm, and Alcon.