Treasury Market Outlook: bond yields are a little richer
Treasury Market Outlook: bond yields are a little richer, led by the Gilt. Stocks are mixed with European bourses lower, with U.S. futures hovering either side of unchanged. News that the U.S. and China held another phone conference on trade yesterday provided a small boost to stocks and weighed on bonds, but the moves have faded as details are still not fixed and the markets grow weary of the ups and downs. Additionally, while a Phase One deal may ultimately be achieved, the next phases are expected to be much more difficult. Asian markets closed mostly higher, although the Hang Seng, which outperformed yesterday, lost -0.29% as there were no signs that HK leader Carrie Lam will make new concessions after the strong support for pro-democracy parties in local elections, which is feared to lead to new protests. The S&P 500 mini is fractionally lower, in tandem with European bourses excluding the FTSE, which is 0.1% firmer. The Gilt yield is 4.7 bps lower at 0.646%, with the Bund down 1.3 bps to -0.364%, while the 10-year Treasury is 0.9 bps richer at 1.608%, while the 2-year note is 0.4 bps lower at 1.596%. The U.S. calendar is heavy with November consumer confidence, new home sales, the October advance goods trade report, along with retail and wholesale inventories, as well as the September FHFA home price index, along with September Case-Shiller home price index, the November Richmond Fed index, and weekly chain store sales. The Treasury auctions $41 B in 5-year notes and $18 B of 2-year FRNs. For Fedspeak, Brainard discusses policy framework review from New York. The earnings calendar features Bank of Nova Scotia, Vmware, Analog Devices, Dell, Autodesk, Dollar Tree, Hormel, Veeva Systems, and Best Buy.