S&P 500 futures are up by 25 points, or 0.6%, on the day and typically that tends to signal a more risk positive mood. These days that would mean bonds are also more bid but today, the bond market is having other ideas. 10-year Treasury yields are instead up over 3 bps to 3.804%, looking to post back-to-back rises since the start of the month.
The dollar is slightly weaker on the balance of things but overall is keeping rather mixed and choppy so far in European morning trade.
There is a sense that markets are looking fairly unsettled as we continue to debate whether the relief rally can continue and whether or not the dollar is going to find another leg lower.
Fed speakers have not made it easy by dangling the carrot in saying that they may slow down the pace of rate hikes but at the same time, hinted that the terminal rate may be higher than what is currently perceived - somewhere around 5%.
It's a tricky time to pick sides but as has been the case in situations like these in the past, your best bet is to lean on the technicals and chase a break there.
