Stock index futures rose Wednesday while rates remained nearly stable, a day after major markets reversed course to close lower following a relatively calm trading session.
Rates remained unchanged, with the 10-year Treasury yield (US10Y) unchanged at 4.24% and the 2-year Treasury yield (US2Y) at 4.60%.
See how Treasury yields have fared along the curve on the Seeking Alpha bonds page.
“A shortened trading week coinciding with the end of the first quarter has left investors sitting on their hands, seemingly unwilling to commit to new positions in the absence of major corporate or economic catalysts,” said Interactive Investor’s Richard Hunter.
Hunter added inflation and therefore the direction of interest rates remains the central theme, with the latest personal consumption expenditures report expected on Friday, when markets are closed, “thus postponing any price reaction until next week” , he said.
The Federal Reserve’s preferred inflation gauge, the Core PCE Price Index, which is expected to reach its value before the bell on March 29, is expected to rise +0.3% M/M for February.
“As we get ever closer to the Easter holidays, things remained calm in the markets yesterday, except for a large late sell-off in US stocks that occurred a bit suddenly. Markets have been a bit weak this week , so it could have helped in anticipation of the main event on Friday at 12.30pm London time,” said Jim Reid of Deutsche Bank.
The economic calendar is slim for the day, with Fed Governor Christopher Waller due to speak later.