US futures pared losses though European contracts were lower.
The S&P 500 Index was little changed as of 4:01 p.m. The economic situation wasn't helped by the news out of Britain where Prime Minister Boris Johnson asked Queen Elizabeth II to shut parliament down for more than a month, limiting the amount of time lawmakers have to debate leaving the European Union on October 31.
Investor sentiment remains fragile after President Donald Trump's recent pronouncements on trade and as optimism for a resolution becomes more hard to sustain. Treasury Secretary Steven Mnuchin said USA trade officials expect Chinese negotiators to visit Washington, but wouldn't say whether a previously planned September meeting would take place, while White House trade adviser Peter Navarro played down a quick resolution. He did not say if a previously scheduled September meeting would take place.
Markets Insider is looking for a panel of millennial investors. "The market adjusts quicker than the Fed". Investors might have an appetite for the bonds when yields are high, but as the economy slows down and the Federal Reserve lowers interest rates, demand is likely to wane.
Mnuchin also said that while there are no plans by the administration to directly intervene in the U.S. dollar, he hopes future moves will be coordinated with the Federal Reserve - again bringing back into contention the risk of the Fed losing its independence, OCBC further noted. Italian bonds rose as the country moved toward forming a new government.
Elsewhere, oil maintained gains after a bigger-than-expected drop in American crude inventories and as Iran all but ruled out a USA meeting.
The second reading of Q2 U.S. GDP Thursday is expected to refine estimates of slightly lower economic growth.
The dollar index .DXY , tracking it against six major currencies, rose 0.24%, while the euro EUR= was down 0.19% to $1.1056.
The U.K.'s FTSE 100 Index rose 0.3%.
Among commodities, spot gold XAU= last fell 0.73% to trade at $1,527.60 per ounce.
The gap between five- and 30-year Treasury yields widened to 59 basis points, from 56 basis points just before the news broke late Wednesday.