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Bonds

Treasury yields look to snap a four-day advance as the bond selloff pauses for the time being.

The yield on the 2-year Treasury note has fallen by 6.7 basis points to 2.435 percent.

5-year Treasury yields are down 5.4 basis points to 2.649 percent.

Ten-year Treasury yields fell 2.8 basis points to 2.581 percent.

30-year Treasury yields fell 1.1 basis points to 2.621 percent.

That could be providing some relief to stocks, which are hoping to end a two-day decline. European equities are holding higher, while US futures are up around 0.3 percent.

It is difficult to attribute much to today’s drop in bond yields because it follows a four-day rise in Treasuries.

In the forex market, the dollar is mostly calmer in a choppy session, but it is mostly unchanged. The aussie and kiwi have been notable laggards, but have remained near the day’s lows since Asia trading began.

Japan

Japan will release 15 million barrels of oil as part of a coordinated release led by the IEA.

Kyodo News has a report on the situation. That is only about 4-5 days’ worth of daily consumption in Japan, so it doesn’t really say as much as the headline suggests.

Equity

European equities open slightly higher in Europe Some cautious optimism, but it is still early in the day.

Eurostoxx +0.4%, Germany DAX +0.2%, France CAC 40 +0.5%, UK FTSE flat & Spain IBEX +0.4%

This comes as US futures pare earlier losses, becoming more flattish for the time being. The mood in equities has been rather glum this week, so the gains here may not be significant. It follows a more turbulent two days for stocks, as tighter central bank policy and inflation fears continue to weigh on sentiment.

EU

The EU’s full ban on Russian coal is expected to be delayed until mid-August, according to Reuters, citing a source familiar with the situation. The measures are set to be approved by EU diplomats today, but the nature of the ban would not go into effect until mid-August, a month later than originally proposed. According to the cited source, this comes as a result of German pressure to postpone the measure.

Oil and gas are still the two most important issues at stake, but the coal ban would be the EU’s first foray into sanctioning Russian energy. Small steps.

Switzerland

Switzerland’s March foreign currency reserves were CHF 910.5 billion, up from CHF 938.3 billion the previous month, according to the most recent SNB data.

There has been a bit of a plateau in Swiss reserves ahead of the CHF 1 trillion mark, but don’t get too worked up about it. The long-term trend is clear, and the SNB’s stance is unlikely to change anytime soon.