Improving Sentiment in Europe Sparks Equity Rally

Despite a growing second wave of viral infections bringing with it the potential for renewed lockdowns, improving business outlooks across the EU have sparked a pre-market rally in U.S. equities as Treasury bonds face a mild sell-off.

Ten-Year Treasuries have slipped a handful of 32nds and that has pushed the yield up slightly to around 67 basis points. The Long Bond is off about a half-point to 1.42% while the Two-Year is unchanged at 13 basis points. Gold is up a couple bucks to $1,863 as crude has regained a $40 handle. Today’s only data release is scheduled for a little later this morning when the Dallas Fed is expected to report that its Manufacturing Index improved to 9.5 in September from a level of 8 in August.