Bonds Pare Losses From Near Week Lows


U.S. Treasuries were lower after a choppy overnight session Friday, but off their week lows with the long bond remaining the biggest loser. Stocks extended Thursday’s European Central Bank-inspired rally. Gilts led the weakness in sovereigns dropping to take the yield up 5.5 basis points to 1.433%. The German bund outperformed with the yield down 2 bps to 0.359%. The Treasury benchmark 10-year recovered after falling 2 bps to 2.444% earlier. Asian equities were mixed and Japan’s Nikkei posted solid gains of 1.2%. Chinese shares hit a one-week high, though gains were moderated by strong inflation data and declines in casinos after news ATM withdrawals would be limited. The Hang Seng and Kospi were lower. South Korean President Park was impeached and the Kospi finished in the red. The Bundesbank is upbeat on German growth.

The U.S. economic calendar is light with the December preliminary University of Michigan consumer sentiment and the October wholesale trade reports due at 10 a.m. ET.