The bond market remains a central story for traders this morning.
The U.S. 10-year yield is at 5.1226%, near its highest level since 2007, while the 30-year yield has moved higher as well.
Yesterday’s strong U.S. business activity data added to concerns that the Fed may need to do more to contain inflation.
Oil is also rebounding, keeping the potential effect of energy costs on inflation in view.
Dow industrial average: −178 points
S&P 500: −38 points
Nasdaq: −274 points
The dollar is higher against all seven major currencies.
The largest move is against the Japanese yen, with USDJPY up 0.28% to 158.74.
The dollar is up 0.23% against the Swiss franc and 0.09% against the Canadian dollar.
EURUSD is down 0.04% to 1.1375, the smallest dollar move in the group.
GBPUSD is down 0.07% to 1.3228, AUDUSD is down 0.11% to 0.7028, and NZDUSD is down 0.07% to 0.5669.
Yields
The Treasury curve is giving a mixed signal this morning. Shorter yields in the snapshot are lower on the day, while the 10- and 30-year yields are higher:
2-year: 4.8661%, −2.89 basis points
5-year: 4.9928%, −1.22 basis points
10-year: 5.1226%, +0.86 basis points
30-year: 5.4318%, +2.98 basis points