Treasury yields are also pulling back.
The 2-yr note yield is up three basis points to 4.09% after hitting 4.12% recently.
The 10-yr note yield is down one basis point to 3.049% after hitting 3.52% recently.
Treasury futures slipped out of the gate last evening and continued to fresh lows as the focus shifted to Europe, but the past three hours have seen a bounce that reclaimed the bulk of last night’s losses.
The biggest headline of the night came from OPEC+, as Saudi Arabia announced that it will reduce its oil output by 500,000 barrels a day while other producers will reduce their total output by 560,000 barrels a day. The news has sent the price of oil higher by nearly $5.00/bbl toward its January high.
Economic data released overnight showed a deepening contraction in the eurozone’s Manufacturing PMI while China’s Caixin Manufacturing PMI returned to 50.0, indicating no change in activity.
The market will also receive the latest IHS Markit Manufacturing PMI for the U.S. and the ISM Manufacturing Index this morning.
The U.S. Dollar Index is up 0.2% at 102.40.
2-yr: +3 bps to 4.09%
3-yr: +1 bp to 3.84%
5-yr: +1 bp to 3.62%
10-yr: +1 bp to 3.50%
30-yr: -1 bp to 3.68%