The US traders have dipped the futures lower as they react more negatively to the US jobs report from Friday. The expectations of a 25 basis point hike in May has increased toward 70% from just below 50% before the release on Friday.
Looking at the futures, the major indices are set open lower with the NASDAQ leading the way to the downside
- Dow industrial average is down -108 point
- S&P index is down -23.5 points
- NASDAQ index is -112 point
Looking at the US yields, the two year yield is now up 1.1 basis points at 3.982%. The yield is still below 4% but on Thursday (the high yield was at 5.085% back on March 8), the yield closed at 3.836%. Remember the US bond market was open on Friday for part of the trading day.
The 10 year yield is trading at 3.390% up 0.6 basis points. On Thursday the yield closed at 3.307%.
Admittedly it's not a disaster in the US treasury market, but the lows may be in place with more upside potential.
Gold is moving lower with the higher dollar. Is currently down $-15.73 and back below the $2000 level at $1991.20. Crude oil is also marginally lower at $80.42 down around $0.28 on the day.
