Beyond the Headlines

Treasury yields are moving higher and steeper after the ECB pledged to maintain its ultra-accommodative monetary policies for as long as needed.  A Bloomberg article reports that President Biden’s $1.9 trillion stimulus proposal faces resistance from moderate...

A positive tone in risk markets overnight is contributing to slightly higher long-end Treasury yields this morning. U.S. equity futures are up 38-97 bps ahead of the open, with tech leading the way, and the 10-year yield is holding near 1.10%.  The MBA mortgage...

A modest risk-on trade emerged overnight ahead of Janet Yellen’s testimony before the Senate Finance Committee this morning, where, as Treasury Secretary nominee, she will essentially attempt to sell President-elect Joe Biden’s $1.9 trillion stimulus proposal. In...

Risk markets are taking pause this morning on concerns that Biden’s ambitious $1.9 trillion stimulus package will face greater challenges in Congress due to the costs. For equity markets, investors are also weighing the obvious benefits of immediate stimulus versus...

Treasuries yields are drifting higher on reports that President-elect Biden plans to push for close to $2 trillion of additional Covid-19 aid from Congress, more than what was initially expected.  Fed Vice Chair Richard Clarida made headlines yesterday when he said,...

Long-end yields are slightly lower while US equity futures are pointing to a lower open this morning. Comments made yesterday by St. Louis Fed President Bullard and Boston Fed president Rosengren helped to allay fears of another taper tantrum and keep a lid on bond...

Treasuries and U.S. equity futures are little changed to start the morning. European equity markets are weaker on reports that Germany is considering another 10 weeks of lockdown to combat the Covid crisis. The move in long-end Treasuries to start the year has been...

Overnight trading volumes were light in the Treasury market with Japan closed for holiday. Yields are slightly lower/flatter this morning on a softer tone in risk markets both here and abroad. There are no data releases on the economic calendar for today, but December...

Treasuries have fluctuated between positive and negative territory on the day following the release of a disappointing jobs report. Nonfarm payrolls shed 140,000 jobs in December amid renewed Covid-related lockdowns across the country, with much of the job losses...

Treasury yields are higher and steeper again this morning amid fresh global government debt supply and expectations for greater stimulus spending following the Georgia Senate results. Congress formally confirmed Joe Biden’s election to the presidency overnight, and...

US Treasuries bear steepened overnight as Democrats look to flip both seats in Georgia’s second Senate runoff. The Associated Press has already called the first race for Democrat Raphael Warnock while the second seat remains too close to call. If Democrats win both...

The resumption of heavy government and corporate debt issuance is putting upward pressure on long-end Treasury yields this morning despite a softer tone in risk markets. The surge in Covid hospitalizations continues to put significant pressure on healthcare facilities...

Treasury yields are drifting higher and steeper to start 2021 amid a positive tone in global risk markets. Most major equity indices are higher despite warnings of new and extended Covid-related lockdowns in Japan and Europe. This week’s economic calendar is...

We’ve finally reached the last day of what has been a very challenging year. Financial markets are little changed this morning, and overnight activity was expectedly muted, with Treasury trading volumes at 35% of average (Japan closed for holiday). Initial and...

Treasuries are little changed this morning as we draw closer to the end of 2020. U.S. equities are poised for a modest rebound from yesterday’s action, with futures up 20-45 bps ahead of the open. Germany is considering extending current lockdown measures after...

Treasury yields are drifting higher on another relatively quiet morning from a trading perspective. The House passed President Trump’s proposal to increase stimulus checks to $2,000, but the measure faces a more uphill battle in the Senate. Senate Republicans have...

President Trump’s decision last night to sign the spending and Covid-aid package sparked a risk-on trade overnight. Treasury yields are higher and steeper this morning, and U.S. equity futures are up 55-90 bps. The $2.3 trillion spending bill averted a government...

Volumes are light ahead of the Christmas holiday with both US Treasury yields and equities essentially unchanged in the overnight session. Headlines are focused on the European Union and United Kingdom finalizing a post-Brexit trade accord after reaching a compromise...

The US Treasury curve is steeper this morning despite President Trump’s criticism on the recently passed COVID stimulus package. Equities initially declined by 0.7% in the overnight session but have since recovered with the S&P500 up 0.28% ahead of the open. The...

Fears of a virus mutation in southeast England fueled risk-off sentiment that sent US equities lower (S&P500 -1.58%) and US Treasury prices higher. In response to the outbreak London has announced tier 4 restrictions which close non-essential businesses, and...