U.S. Treasuries are on track for a lower start, but the first few minutes of the cash session could see increased volatility as the market responds to the release of the April jobs report at 8:30 ET.
Treasury futures faced some selling pressure after yesterday’s cash close with futures on the 5-yr note briefly dipping past their intraday lows.
Japan’s Tokyo CPI increased at its fastest pace since 2014 in the headline reading for April while the core reading increased at its fastest pace since 2015.
In Europe, expectations for a July rate hike are on the rise.
The U.S. Dollar Index touched a fresh 20-year high overnight before turning negative. The Index is down 0.5% at 103.28, narrowing this week’s gain to 0.1%.