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(CEP News) - Equity futures indicate another tough day on Wall Street and Treasuries are rallying in response. Canadian markets are closed due to the Canada Day holiday.
U.S. equity market futures are lower with contracts on the Dow Jones Industrial Average down 96 points to 11243, the S&P 500 down 13 points to 1268 and the Nasdaq down 20 points to 1826. European stock markets are also lower, with the Eurostoxx down 56 points to 2850, the UK FTSE 100 down 132 points to 5494 and the German DAX down 117 points to 6301. Asian markets were mixed, with the Japanese Nikkei closing down 18 points to 13463 and the Hang Seng Index up 60 points to 22102. Market participants will be looking to the 10 a.m. EDT release of the Institute for Supply Management's manufacturing survey for June. It is expected to decline to 48.5 from 49.6. U.S. two-year yields are down 5.7 bps to 2.56%, with five-year yields down 5.8 bps to 3.27%, 10-year yields down 4.6 bps to 3.92% and 30-year yields down 3.5 bps to 4.49%. The Eurodollar September 08 contract is up 3.0 ticks to 97.10. The yield curve is steeper, with the 10/2-year spread up 1.1 bps to 136.39 bps. "It's no great surprise that investors are waking up to the fact that short Treasury yields are looking pretty choice in a world where loan losses still rise and stock prices fall apace," wrote William O'Donnell, fixed income strategist at UBS, in a note to clients. Yields on two-year Canadian government bonds are up 0.6 bps to 3.25%, with five-year yields flat at 3.46%, 10-year yields up 0.8 bps to 3.74% and 30-year yields flat at 4.08%. The Canadian 10-year note is yielding 18.07 bps less than the U.S. 10-year note. The Canadian 10-year note is yielding 18.07 bps less than the U.S. 10-year note. In Germany, returns on two-year German bonds are down 6.5 bps to 4.53%, with five-year yields down 7.2 bps to 4.56%, 10-year yields down 7.9 bps to 4.54% and 30-year yields down 7.5 bps to 4.78%. Yields on UK two-year bonds are down 8.2 bps to 5.14%, with five-year yields down 8.6 bps to 5.09%, 10-year yields down 7.8 bps to 5.05% and 30-year yields down 3.4 bps to 4.65%. The Canadian dollar is up 0.0037 to 0.9825 against the U.S. dollar (1.0179 USD/CAD) and down 0.3490 to 103.6380 against the yen. The U.S. dollar is down 0.7050 to 105.5100 against the yen and the Dollar Index is down 0.154 to 72.309. The euro is up 0.0027 to 1.5782 against the U.S. dollar, down 0.0025 to 1.6067 against the Canadian dollar, up 0.0004 to 0.7912 against the pound sterling and is lower by 0.81 to 166.52 against the yen. The pound sterling is up 0.0026 to 1.9949 against the U.S. dollar and down 0.0044 to 2.0308 against the Canadian dollar. WTI crude oil is up $2.24 to $142.24. The front month gold contract at the Chicago Board of Trade is up $6.60 to $934.70 per ounce. All data taken at 8:50 a.m. EDT. By Adam Button,
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, edited by Stephen Huebl,
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