Reply To: Bond Traders Weekly Outlook: U.S. Treasuries Backed Off September Highs on Optimistic Chatter


U.S. Treasuries on track for a lower start with longer tenors expected to show relative weakness early.

Overnight action saw the release of a big batch of data, headlined by better than December growth figures from China while Germany’s ZEW Economic Sentiment survey turned positive for the first time in nearly a year, reflecting a significant improvement in growth expectations.

Economic data from the U.S. will be limited to a lower-tier manufacturing survey, but it is worth noting that Goldman Sachs (GS) reported weaker than expected EPS and revenue for Q4 while Morgan Stanley (MS) missed EPS expectations on above-consensus revenue.

The U.S. Dollar Index is down 0.3% at 102.09.

2-yr: +3 bps to 4.25%
3-yr: +4 bps to 3.93%
5-yr: +5 bps to 3.66%
10-yr: +6 bps to 3.57%
30-yr: +7 bps to 3.69%