Treasury Yields Rise as U.S. Stock Futures Advance

Treasuries fell and U.S. stock index futures climbed on Tuesday as investor fears triggered by signals from the American bond market showed signs of easing. The dollar was steady and European shares advanced. The yield on benchmark U.S. debt rose after closing below 2.4 percent on Monday, though the spread between three-month and 10-year rates remained in negative territory. Futures on the Dow Jones, Nasdaq and S&P 500 indexes all advanced, and gains in healthcare companies helped the Stoxx Europe 600 into the green. In Asia, Japan’s Topix Index jumped more than 2.5 percent, a day after it had its biggest slide this year. European bonds tracked Treasuries lower and the euro edged up against the greenback.

Traders remain on edge following increased volatility at the end of last week after European data disappointed and the U.S. yield curve inverted — a key recession indicator for many in the market. The outcome of trade talks between America and China and any developments in Britain’s tortuous exit of the European Union could help determine sentiment from here.

Meanwhile, the pound fluctuated before turning higher against the dollar as key Brexiteers swung behind Prime Minister Theresa May’s plan to leave the European Union. Legislators could still push for alternative options, potentially including a second referendum, or even canceling Brexit.

Futures on the S&P 500 Index gained 0.5 percent as of 11:04 a.m. London time. The Stoxx Europe 600 Index increased 0.5 percent, the first advance in a week. The MSCI Asia Pacific Index jumped 1 percent, the largest climb in almost two weeks. The MSCI Emerging Market Index rose 0.2 percent, the biggest advance in a week.

Treasury Yields Rise as U.S. Stock Futures Advance, Bloomberg, Mar 26