U.S. Stock Futures Are Lower And Treasury Yields Are Edging Up

U.S. stock futures are lower.    U.S June payrolls increased 372k versus estimate of 265K and the unemployment rate remained unchanged at 3.6%.  Post report, equity futures are lower and treasury yields are edging up  with the higher probability of an aggressive hiking.  The average hourly earnings month over month was unchanged at 0.3% and in line with consensus and the annual increase was 5.1% versus 5.0% estimate.  The yield curve remains inverted with the 2y at 3.10% and 10y at 3.07%.  European markets are trading mixed and Asian markets closed higher.  High yield and investment grade spreads have widened out but pulled back from their respective 52-week highs as the chances of a recession increases; additionally, the funding markets remain active.