US Treasury prices backed off the overnight highs early Thursday, edging off the week-ago low yield levels on the back of Wednesday’s Federal Open Market Committee (FOMC) rally. The two-year note was near 2.82% versus 2.027% Wednesday, with the 10-year near 3.048% from 3.025%. Trade may be weighed on by the $31 billion seven-year note auction results.
Core European yields were just over 1 basis point lower with the UK Gilt off 1.5 bps near 1.576%, while the German Bund was down 1.3 bps to 0.511%. Italy’s note yield was higher on renewed budget jitters. Japanese Government Bonds declined 0.7 bps to 0.106%.
Stocks were mixed with US futures pointing to a firmer open, bouncing from Wednesday’s late drop. European bourses were mostly weaker with the DAX off 0.12%, while the FTSE is 0.24% higher. The Nikkei closed with a 0.99% loss, with the Shanghai Comp having dropped 0.54%.
Overnight data showed weaker-than-expected European Monetary Union confidence, while German institutes trimmed their growth outlooks. The Philippines and Indonesian central banks hiked rates.
Thursday offers up a slew of data including the third read on Q2 gross domestic product, initial weekly jobless claims, August trade, durable goods and wholesale inventories all due at 8:30 am. August pending home sales are due at 10 am ET.
Treasury will offer details on Monday’s three- and six-month bill auctions at 11 am. The results of the seven-year notes auction are due at 1 pm.
Fed speakers include Dallas President Robert Kaplan in a Q&A at a banking forum at 2 pm. Fed Chair Jerome Powell will speak on the economy “briefly” at 4:30 pm followed with a Q&A.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.