NEW YORK – U.S. stocks opened lower Tuesday as bond yields climbed for a second day. Bond yields rose amid signs that global inflation may be rising from a very low level.
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Treasury notes fell after a report showed that consumer prices in the 19-country eurozone are rising for the first time since last November.
Utility stocks led declines for stocks as bond yields, which move in the opposite directions to prices, climbed. Investors bought dividend-rich utility stocks last year as bond yields plunged.
Investors were also following developments in negotiations between Greece and its creditors.
KEEPING SCORE: The Standard & Poor's 500 index fell four points, or 0.3 percent, to 2,106 as of 10:16 a.m. Eastern time. The Dow Jones industrial average dropped 45 points, or 0.3 percent, to 17,993. The Nasdaq composite slipped 15 points, or 0.3 percent, to 5,067.
GREECE IN FOCUS: A day after an emergency meeting of Greece's international creditors, the country submitted a proposal it hopes will seal a deal to secure funds from its lenders. Greek Prime Minister Alexis Tspiras said it is now up Europe's leaders to accept a deal or risk potentially disastrous consequences for the region. For four months, Greece and its creditors have been locked in a standoff over what reforms the country needs to make to get more loans.
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EUROPE'S DAY: In Europe, Germany's DAX shed 1.1 percent while France's CAC 40 was down 0.5 percent. Britain's FTSE 100 fell 0.2 percent.
EUROZONE INFLATION: Consumer prices in the 19-country eurozone are rising for the first time since last November. Official figures Tuesday from the European Union's statistics agency, Eurostat, showed that consumer prices across the currency bloc were up 0.3 percent in May from the year before. That's up from the flat reading in April and is the first positive reading since November.
BONDS: U.S. government bond prices fell, pushing the yield on the 10-year Treasury note up to 2.24 percent from 2.18 percent late Monday. European government bond yields also rose broadly. The yield on the 10-year German government bond rose to 0.66 percent from 0.55 percent, a large move.
CURRENCIES: The euro rose sharply against the dollar, trading at $1.1125, up from $1.0934 the day before. The dollar fell to 124.06 Japanese yen from 124.84 yen.