Stocks nudge a little higher as yields retreat slightly on the session

<p>S&amp;P 500 futures are now up 0.2% with European indices also nudging a little higher, with the DAX up 0.2% and CAC 40 up 0.3%. This comes as 10-year Treasury yields are moving slightly lower, down 2.5 bps to 3.992%. A drop under the 4% mark would ease some of the worries from last week, when yields raced higher as traders pared back central bank rate cut bets.</p><p>It's still early in the day and the moves here come amid a quieter session so far in European morning trade. If they do extend further, I'd pin it down to some positioning flows ahead of the US CPI data tomorrow. But at the same time, what we're seeing now could still reverse back later in North America trading amid more of a push and pull in flows.</p><p>Either way, the action in the bond market remains the focus of the attention here. The dollar is lower as a result now with EUR/USD up nearly 0.2% to 1.0949 and AUD/USD up 0.4% to 0.6708 on the day. USD/JPY is an outlier though, keeping higher at 144.95 currently with large option expiries at 145.00 still in play.</p>

This article was written by Justin Low at www.forexlive.com.