We're starting to see more of a sense of risk-off trading in markets at the moment as equities continue to slide after the opening hour in European trading today. S&P 500 futures are now down by 48 points, or 1.1%, while European indices have seen losses deepen with the Eurostoxx down 1.7%, DAX down 1.7%, CAC 40 down 1.7%, and UK FTSE down 0.7%.
The risk aversion is putting a bid in bonds as yields are falling on the day. 10-year Treasury yields are down 4 bps to 2.95% and coincidentally, the move comes as yields contested the 3.00% mark from the end of last week:
In Europe, 10-year German bund yields are also seen down 5 bps to 1.185% at the moment.
Elsewhere, we are also seeing commodities take a bit more of a hit with WTI crude seen down 2% to $88.70 currently. In FX, USD/JPY has also slipped from 137.25 earlier in the session to a low of 136.70 as more cautious risk tones are starting to engulf markets as the key theme to start the new week.