Please mind the gap. That looks to be the story as we move towards European trading as the early optimism in markets have all but completely faded. S&P 500 futures are now down 15 points, or 0.4%, while we are seeing a move lower in Treasury yields as well. 2-year yields are now down by 6 bps to 3.784%:
For some context, the opening levels saw it push to as high as 4.029% so that is roughly a 25 bps drop from there to now.
Elsewhere, the dollar has also closed its opening gap lower against the rest of the major currencies and it is once again the Japanese yen that is now starting to pull ahead. USD/JPY is at the lows for the day, down 0.3% to 131.45 as it is weighed down by lower yields.
