Treasuries are gaining as the euro slides after euro-area unemployment rose to a record 12.2% in April and German retail sales missed estimates. The Euro Stoxx 50 is down -0.64% while most sovereign debt yields are trading down moderately and the euro is lower by -0.3% versus the greenback. Domestically, Treasury yields are lower, with tens down -4bps to 2.07%, while S&P 500 futures are trading down -0.5%. Copper is down -0.9%, gold is -0.4% lower, and crude oil is off by -0.7% after OPEC left its production cap at 30M barrels per day.

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U.S. futures are rebounding this morning, signaling stocks may rally after yesterday’s biggest drop in four weeks ahead of reports on home sales and economic growth. Sovereign yields are lower across the board, led by German and U.S. debt, while in Asia Japan’s Nikkei 225 tumbled -5.2%, extending its loss from last week’s high to 13%. U.S. Treasury yields reversed lower amid weakness in euro-area equities and most commodities, with fives and tens higher by +3bps and +2bps to 1.04% and 2.14% respectively. Crude oil is down by -0.6% and copper is nearly unchanged, while gold is up +0.5% and nearing resistance at $1,400. Front-month S&P 500 futures are higher by +0.3%, while in Europe the Euro Stoxx 50 has pared earlier losses to rise +0.8%. The dollar index is slightly in the green after declining overnight and the euro is slightly higher as well, while the yen continues weakening.

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