Markets are a little more upbeat this morning as Treasuries reverse course from Monday and equity futures prepare for a rebound after shedding nearly 1%.

The 10-year and 30-year yields are three basis points softer at 1.98% and 3.25%, respectively, while the two-year yield is steady at 0.16%.

S&P 500 futures are 7.4 points higher at 1,205.20 and Dow futures are up 82 points at 11,405. 

"A hint of optimism stemming from the latest audit in Greece is what investors are hanging onto this morning, and that is what is driving the EUR higher, as well as European stock markets," said BMO Capital Markets. 

The FTSE 100 is up 1.41%, the CAC-40 is 1.28% higher, and the Euro Stoxx 50 is up 1.67%.

Evangelos Venizelos, Greece's finance minister, described recent talks with the IMF/EU/ECB as "productive," and the IMF said there has been "impressive fiscal consolidation," according to BMO. The bank added, "Those are encouraging words, so here's hoping that Greece will be cleared for the next handout and that'll settle default concerns, albeit momentarily."

Light crude oil moved up 0.89% overnight to $86.46 per barrel, and gold prices are up 0.73% at $1,791.50

Key Events Today:

8:30 - Housing Starts are anticipated to stumble in August. The annual pace of new homes being constructed fell 1.5% to 604k in July, and now economists expect the rate to drop 1.8% to 590k. Building permits, which anticipate starts, were last at 601k and are now forecast to fall to 590k.

"The single-family market shows no signs of life," said IHS Global Insight. "We are expecting a marginal improvement in housing starts in August with the gains expected to come from the volatile multi-family segment. This segment, which makes up about one-third of the housing market, is slowly coming back to life."

Citigroup takes the opposite position.

"We expect another decline in housing starts in August, this time reflecting a pullback in multifamily starts," they wrote. "The jumps in multifamily starts in June and July seemed to have gone further than implied by fundamentals, and therefore we look for a partial reversal.

• Treasury Auctions:
• 11:30 - 4-Week Bills
• 11:30 - 52-Week Bills