U.S. Stock Futures Are Higher As the Second Day of Chairman Powell's Testimony Begins
U.S. stock futures are higher. Today is Chairman Powell’s second day of testimony with treasury yields edging lower and equity futures up in early morning trading. The 10y is at 3.12% down roughly 4 bps. Powell stated that a soft landing would be “very challenging” while reducing high inflationary levels and reiterated that the Fed is “strongly committed” to this objective. Last week new jobless claims were 229k compared to 225k consensus. European government bonds yields declined Thursday as the S&P Global flash composite purchasing manager’s index dropped to 51.9 in June from 54.8 in May, the consensus was 54. German 10y yield were down 15 bps at 1.42%, lowest in one and half weeks. European market are lower and Asian markets closed higher. Fears of a recession drove investment grade and high yields index spreads to a 52 high.