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The Bond Market and the Fed

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What’s in Today’s Report:

  • Another Message from the Bond Market for the Fed
  • European Political Issues (Again)

Stock futures are trading solidly lower this morning as global bond yields continue to drop sharply amid ongoing trade war worries and increasing global growth concerns.

There were no major trade war developments o/n but China reiterated their threat of cutting rare earth exports to the U.S. which further dampened investor sentiment.

The only notable economic report overnight was the German Unemployment Rate which edged up to 5.0% vs. (E) 4.9%.

Looking into today’s session, there are no economic reports due to be released and no Fed officials are scheduled to speak.

There is a 7-Yr. T-Note Auction at 1 p.m. ET however, and if demand is as strong as yesterday’s Treasury auctions, stocks could remain under pressure and the S&P would likely break key psychological support at 2,800.