Good morning- Global equities are mostly higher to start this morning’s session. European stocks are all positive with the Euro Stoxx 24 up points, FTSE up 37 points, and DAX up 73.5 points. Asian stocks are more mixed as the Nikkei is up 60 points and the Hang Seng is down 27. US equities are all in the green with the DOW is up 27 points, S&P up 2.25 points, and the NASDAQ up 19.75 points. The yield on the US 10 yr is up to 2.289% amid hawkish commentary from Yellen and the anticipation of tax cuts. The Bloomberg Barclays IG and HY indices closed tighter on Tuesday bringing IG to YTD tights. Moreover, oil is now up to $52/bbl and the VIX is back below 10. Today the U.S. Treasury is expected to sell $13b 2y FRNs and $34b 5y notes and we will also see durable goods orders and pending home sales.
In other news, Trump is set to unveil his broad tax reduction plan after Senate Republicans said that they would not vote on the health bill. In Europe, Volkswagen’s Scania unit was fined 880.5 million euros ($1.03 billion) by the European Union for price-fixing.