Stock index futures were weaker on Tuesday, while yields fell as investors placed cautious bets ahead of key inflation data to be released tomorrow.
S&P 500 futures (SPX) +0.2%Nasdaq 100 futures (NDX:IND) +0.2% and Dow futures (Indu) no change
10 years Government bond yield (US10Y) decreased by 3 basis points to 4.40%. 2 year yield (US2Y) decreased by 2 basis points to 4.78%.
Learn how other yields trade across the yield curve here.
Deutsche Bank's Henry Allen said markets had a quiet start to the week yesterday, with few new developments to spur fresh action.
“Things should change later this week with the US CPI report, ECB policy decision and the start of Q1 earnings season scheduled. But for now at least, the main themes are a continuation of last week. “We are seeing trends such as growing doubts about rate cuts this year and growing concerns about inflation,'' Allen added.
The consumer price index for March, which will be released tomorrow, is expected to rise at an annual rate of 3.4%.
The NFIB Small Business Optimism Index data for March, released at 6 a.m. ET, was 88.5, slightly lower than the expected 88.8.
Pantheon Macroeconomics said: “Confidence among small and medium-sized businesses appears to have further deteriorated more broadly as credit conditions remained tight.”
ING Economics said: “Tuesday's numbers will highlight one troubling issue for markets and for the Fed alike. While official statistics continue to show strength, other survey data has already “This shows remarkable weakness.”