Here Is Why The Futures Are Down

Tyler Durden's picture

No surprises this time in the overnight sessions with treasuries higher into the New York open as Moody’s signaled France’s Aaa rating is at risk and China’s economy grew at the slowest pace in two years, both events reported previously and still occupying the market. Futures are down solidly ahead of Bank of America (which Bloomberg has been caught doing some big shennanigans - see below) and Goldman. More on why numbers on our screen are red, aside from the horrible Crocs guidance of course, is below, courtesy of Bloomberg.

  • Stocks fell and copper led commodities lower. Bloomberg’s Sovereign Debt Movers {WBMV <GO>} is dominated by Northern European names including Denmark, Germany, Finland and the Netherlands. Those nations’ 10-yr yields fell on haven buying
  • 30-yr bonds yield 3.11%, below record-low 3.12% stopout yield at last week’s $13b auction, before Fed purchases $2.25b-$2.75b notes/bonds in 2/15/36 to 8/15/41 range

WHAT TO WATCH

  • French 10-yr spread over bunds climbed to euro-era record as Moody’s said the nation’s Aaa credit rating is under pressure from deterioration in debt metrics and the potential for additional liabilities from the Europe’s debt crisis
  • China’s economy grew 9.1% in the third quarter from a year earlier, the slowest pace since 2009
  • U.K. inflation accelerated to 5.2%, matching a record high set in September
  • German investor confidence fell to -48.3 in October, the lowest in almost three years
  • Bank of America said to move derivatives from its Merrill Lynch unit to subsidiary flush with insured deposits; move said to divide FDIC, Fed
  • Citigroup closing proprietary-trading unit that incurred losses in 3Q as regulators prepare to restrict banks from making bets with shareholder cash
  • Parliamentary debate in Greece due to start today on new round of austerity measures amid public protests, labor-union unrest
  • Borrowing costs rose at auctions of Greek and Belgian bills;
  • Spanish borrowing costs little changed at bill sales