The overall mood seems to be calmer but the same can be said yesterday when markets were actually even looking rather optimistic. For now, sentiment remains on a knife's edge as the bond market is also seemingly rather tentative.
2-year Treasury yields are flattish around 3.97% while 10-year Treasury yields are up just a slight bit at 3.49%. That still doesn't take away much from the sharp plunge yesterday as banking jitters reverberated. Heading into European trading, regional bonds will be a major focus amid the scrutiny on Credit Suisse and also with the ECB coming up later today. 2-year German bond yields saw a big fall yesterday after briefly hitting 3%, dropping to its lowest since December last year:
Looking elsewhere, S&P 500 futures are up 12 points, or 0.3%, with Nasdaq futures up 0.3% and Dow futures up 0.2% on the day. It's not much in terms of change and the mood music can quickly switch around - as seen yesterday - so I wouldn't look too much into it for now.
In FX, the yen remains in pole position with USD/JPY down 0.4% to 132.80 after a big drop yesterday. The greenback is slightly lower against the rest of the major currencies but it is mostly just eating slightly into the gains from the day before.
As things stand, the general rule of thumb is that with every passing minute or hour that there is no further bad news, that is actually good news for markets and overall sentiment.