U.S. Stock Futures Are Higher Following Yesterday's Sell Off
U.S. stock futures are higher: Futures are trending higher following yesterday’s sell off due to rising treasury yields. The 10y treasury rose above 2% and the 2-year note gained roughly 20 basis points on Thursday. The rough trading week was primarily related to shifting interest rate expectations and the possible magnitude of Fed tightening post the CPI release, with certain Fed officials calling for an initial dramatic rate increase to mitigate inflationary pressures. Asian markets closed lower and European markets are trading down. New corporate issuance funding markets have been tepid this week and spreads on both high yield and investment grade have narrowed over the last two days.