Treasuries are slightly firmer and equities are mixed following new earnings reports Friday morning.

The benchmark 10-year Treasury yield is two basis points lower at 2.99%, while the two-year is one basis point firmer at 0.39% and the 30-year yield is two basis points firmer at 4.29%. The Fannie Mae 4.0 is +5/32 at 100-18.

Equity futures were clearly higher two hours before the opening bell but preliminary gains were chopped around 8am after Caterpillar reported earnings of $1.72 per share, three cents below expectations.

Dow futures are now 22 points lower at 12,766 and S&P 500 futures are off 0.25 points at 1,342.

Other earnings were positive: McDonald's shared jumped to an all-time high after reporting earnings per share of $1.35 versus expectations of $1.28. Verizon also reported better than anticipated results.

Outside of earnings the major driver is Thursday's news that European officials offered a new bailout package for Greece which includes €109 billion of new funding.

The initial reaction had U.S. equities jump more than 1% Thursday - the Dow closed at 12,742, its highest since May 10 and just below its calendar-year high of 12,810.54.

One day later, reactions are becoming a bit more sober.

"While this new package of measures goes some way to ring-fencing Greece, Europe's problems are far from completely solved," said Benjamin Reitzes at BMO Capital Markets. "The size of the European Financial Stability Facility is still insufficient to deal with Spain and Italy if problems arise in those countries (though there might be just enough left for Spain)".

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