Equities and bonds are sending mixed signals again to start the week
- German DAX futures +0.7%
- French CAC 40 futures +0.6%
- UK FTSE futures +0.7%
The gains here are in part to do with the recovery in US equities after European markets closed on Friday but also as US futures are looking more buoyant in trading today. E-minis are up by 0.2% and Asian equities are also in a better mood to kick start the week.
That said, bonds are also holding firmer and that is the telltale indication that markets are still looking a bit more cautious. US Treasury yields have opened the day lower with 10-year yields down by nearly 2 bps currently at 1.725%.
Watch out for more negative yielding bonds rhetoric this week as the craze claims its latest victim in the Netherlands with the entire yield curve now switching to negative:
