June S&P 500 E-Mini futures (ESM26) are up +0.69%, and June Nasdaq 100 E-Mini futures (NQM26) are up +0.70% this morning, pointing to a higher open on Wall Street as Treasury yields retreated, while investors continued to monitor developments in the Middle East.
Treasury yields fell across the curve on Monday, with the ten-year rate sliding six basis points to 4.38%, as concerns that the Middle East conflict could spark a sharp economic slowdown led traders to scale back bets on higher interest rates. Money markets reduced the probability of a Federal Reserve rate hike this year to about 20%, down from roughly 35% on Friday. U.S. equity futures drew some support from falling Treasury yields.
