Treasury Market Outlook: yields surged higher overnight
Treasury Market Outlook: yields surged higher overnight after better than expected PMI data out of China supported a hefty selloff to kick off December. The 10-year Treasury is 5.9 bps higher at 1.834%, with the Bund 6.1 bps cheaper at -0.303%, while the Gilt is up 3.7 bps to 0.731%. Peripherals are underperforming with Itally's BTP jumping 11.3 bps to 1.34%. The JGB closed up 3 bps at -0.061%. Equities are mixed, with U.S. futures about 0.15% firmer, while European bourses have given up earlier gains and are modestly in the red as the better data has seen further ECB easing priced out. That outlook was underpinned by comments from ECB's De Guindos who worried about further risk taking amid low rates. Along with the improved data out of China, the markets will monitor Cyber Monday talk. It's a busy data week too, culminating with the jobs report. Today's slate includes the ISM, the Markit PMI, and construction spending.