Reply To: Bond Traders Weekly Outlook: Treasuries Gain as Recession Risks Grow


Early Bonds: U.S. Treasuries higher that will reverse the bulk of yesterday’s losses. Treasury futures began inching higher last evening, accelerating their advance once the focus turned from Asia to Europe. Flash June Manufacturing and Services PMI readings from major economies painted a bleak growth picture, as Australia’s Manufacturing PMI contracted for the fourth consecutive month in the flash reading for June while Japan’s Manufacturing PMI fell back into contraction after expanding slightly in May.

In Europe, flash Manufacturing PMI readings from Germany, France, and the U.K. showed a deepening contraction while France’s Services PMI also fell into contractionary territory.

U.S. Crude oil is seeing an extension of yesterday’s sharp loss while the U.S. Dollar Index is up 0.6% at 102.96, mostly thanks to a pullback in the euro.

2-yr: -5 bps to 4.75%
3-yr: -5 bps to 4.32%
5-yr: -6 bps to 3.99%
10-yr: -6 bps to 3.74%