Treasury Market Outlook: yields are a little cheaper to start the week
Treasury Market Outlook: yields are a little cheaper to start the week, paced by European peripherals. The Gilt is the exception with the rate 3 bps richer at 0.736%. The Bund is up 2 bps at -0.183%. The Treasury 30-year is 2.3 bps higher at 2.302%, while the 10-year is up 1.9 bps at 1.839%, and the 2-year up 0.6 ps at 1.576%. Japan was closed for a holiday. Equities are mixed with U.S. futures and the FTSE about 0.24% firmer, while the DAX has dropped -0.3%. Asian shares rallied with solid gains in Chinese shares. The FTSE and Gilt were boosted by a further slide in GBP, weaker than expected November production and GDP data, and expectations for a 25 bp cut from the BoE by Q3. Trading was rather quiet, and is likely to remain so today with little on the docket, just the Treasury budget. But it will be a busy week with earnings, key data, and the signing of the Phase One deal with China.