Treasury Action: yields are higher globally as hints of increased fiscal spending
Treasury Action: yields are higher globally as hints of increased fiscal spending hit the Street add to the bearish effect from the stronger PMI data. A report from Nikkei News out of Japan indicated a huge stimulus package of some 10 tln yen is being postulated, designed to mitigate the bearish effects of the trade war and the just enacted tax hike. Meanwhile, in Germany one of Chancellor Merkel's coalition partners elected leadership who are arguing for increased fiscal spending, and other social changes. And increased fiscal policy, alongside some improving data, would likely lessen any future support from monetary policy. Italy's BTP is the underperformer, with the yield 11.5 bps cheaper at 1.343%. The Bund is 8.3 bps higher at -0.281%, with the Gilt up 5.8 bps to 0.753%. The 10-year Treasury is following suit and has climbed 7.1 bps to 1.847% in early action.