U.S. Stock Futures Are Lower with Higher Bond Yields #Energy #MarketUpdate #China
U.S. stock futures are lower: Higher bonds yields are negatively impacting equity futures. Treasury yields have increased across the yield curve as investors anticipate the Fed’s tapering earlier. The yield on the 10y is at 1.54% compared to 1.45% from last week. This reversal in yields further reflects a domestic policy shift but also includes other international central bankers changing their policies to less accommodating, resulting in higher global government yields. Energy prices continue to increase as supply disruptions persist for longer than expected as demand is improving. Natural-gas prices set fresh highs Tuesday. U.S. Henry Hub natural gas prices jumped 6.3% to $6.09 per million British thermal units, their highest since 2014. As of today, new infections and hospitalizations are declining nationally and new cases in the most severe locations are also down. European markets are lower this morning with rising bond yields. Asian markets closed down. The People’s Bank of China stated that it would “maintain the healthy development of the property market and safeguard the legitimate rights and interests of house buyers.” This partial support from the central bankers helped rally some of the beaten down Chinese property developers stock prices.