US futures are dragged lower by the surge in Treasury yields today, with 2-year yields and 10-year yields revisiting levels last seen before the pandemic struck. That has proven to be a main drag for tech stocks, with Nasdaq futures down by over 1% currently. S&P 500 futures are also down 0.5% and Dow futures down 0.2%.

European futures are also pointing lower and that is making for a more defensive risk mood going into the session ahead. The aussie and kiwi are laggards in the major currencies space, with the loonie arguably staying afloat only because of stronger oil prices.

The thing to watch out for later today is to see if there will be any extension to the bond rout i.e. push higher in yields and if that will translate to even more selling in equities. The latter could very well evolve into a broader risk aversion theme so just be mindful of that in European and US trading today.