Europe open: All eyes on US government bond yields
European stocks have started the morning higher, with all eyes on Wall Street futures following the long weekend in the States against a backdrop of rising government bond yields.
As of 0915 GMT, the benchmark Stoxx 600 was 0.15% or 0.58 points higher to 378.79, alongside a rise of 0.25% or 31.34 points to 12,416.54 on the German Dax and an advance of 0.23% or 12.03 points to 5,268.21 for the Cac-40.
Meanwhile, S&P 500 'mini' futures contract was pointing to a 13.75 point drop on the benchmark US equity gauge of 13.75 points to 2,721.25 and the yield on the benchmark 10-year US Treasury note was climbing by four basis points to 2.92%.
In the headlines, market commentary had picked up on research from Morgan Stanley pointing out how in inflation-adjusted terms government bond yields in the US had yet to break-out from their recent trading range.
Hence, in their opinion, the early February correction in stocks had been just the "appetiser, not the main course".
Their comments came ahead of the heavy pipeline of bond issuance expected for over the coming week.
Back in European news, Germany's Ministry of Finance reported that the year-on-year rate of advance in consumer prices in the euro area's largest economy slipped to 2.1% for January, versus 2.3% in December (consensus: 1.8%).
Still ahead on Tuesday´s economic calendar was the ZEW institute's economic confidence gauge for Germany in February at 1000 GMT followed by a reading on euro area consumer confidence at 1300 GMT.