Good Morning! US Futures are weaker this AM, led by a 40bp drop in the S&P, while Russell off only small from all-time highs. Germany’s DAX is off 1.6% as Bund yields collapse, fueling flows from Equities. Greece’s Varoufakis meeting Obama today – Athens has lost another 1% and Yields continue to blow wider (new 2+Y peaks to Bunds) causing most to point fingers toward Greece for the selloff – but I think also a continuation of some of the reversal trades we saw yesterday (Selling DAX to buy US as $ drops). Volumes are quite good in Europe, with Germany seeing 150% normal action as the Materials and financial sectors bear the brunt of the selling. Over in Asia, Shanghai jumped nearly 3% to 7Y highs on Stimulus chatter, while Hong Kong added 40bp. Resource Stocks rallied down under, helping Aussie to a 70bp gain, while India was one of the few markets to see losses. While Focus in the USA will be on earnings (NFLX and GS getting most attention) – watch those IPOs - Virtu, Etsy, and Party City all price at top of their ranges.

The US 10YY is lower, breaking yesterday’s floor and yielding less than 1.88%. This is following heavy buying from overseas, as 10Y German Yields break 8bp to the downside. The US$ is losing ground against the majors – Euro testing 1.075 (mean reversion and position trimming causing covering) – The Yen is stronger (leverage coming off) – While the A$ strong on solid jobs #s. The weaker $ should be a tailwind for commodities, but Crude is nearing off 2%, some profit-taking after yesterday’s surge and Headlines Saudi Arabia and Iraq led a surge in OPEC crude oil production in March (Options on WTI expire today at 2:30). China Stimulus hopes have Copper bid up 2% (we saw a strong bid in Steel stocks y’day, and AA bid up this AM), while Gold continues to rest over $1200/oz.

Scheduled Catalysts include Housing Starts and weekly claims at 8:30; ECB's Constancio Speaks at 9; Philadelphia Fed Business Outlook and New York Fed to Host Press Briefing on Student Loans at 10; Natty gas Inventory data at 10:30 – then we get 4 Fed speakers: Fed's Lockhart Speaks on Economic Outlook at 1, Fed's Mester Speaks on Economy at 1:10, and Fed's Fischer Speaks on Inflation Panel at IMF at 1:30 and Fed’s Rosengren speaks in London. G-20 Finance Ministers, Central Bankers Meet in Washington during the day.

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