US Futures are flat as yields rise and softer housing data. US markets retreated yesterday after the 10 yr Treasury broke firmly above 3%. This morning, the Commerce Department reported that housing starts fell more than expected in April, dropping 3.7%. Building permits also fell in April, dropping 1.8%. Later this morning the market will get a look at April industrial production and crude oil and gasoline inventories from last week. European shares are mixed after a tame inflation report in Germany. Sector performance was mixed, however, materials stocks led gains. Asian shares closed mostly lower as geopolitical uncertainty resurfaced as North Korea called off talks with the south.