U.S. Stock Futures Are Lower Following Friday's Selloff in Bonds & Stocks
U.S. stock futures are lower: Equity futures are down driven by higher treasury yields, following Friday’s selloff in both bonds and stocks. The 5Y treasury note is trading above 3% and the curve, based on the 2Y versus 10Y yields, remains steeper. Investors will be focused on the CPI report on Wednesday, with a consensus annual increase of 8.1% and monthly increase of 0.2%. Uncertainty surrounding shifting monetary policy and potential slowdown in economic growth is driving volatility up with the VIX index is inching above 33.6 this morning. Credit spreads, both on HY & IG, have drifted lower over the last week, after hitting 52-week highs and the corporate new issue markets remain active with leverage loans priced at higher coupons and some deals were pulled back last week. Global markets are lower.