The selloff in bonds continues on Wednesday, and stocks are rallying after closing flat on Tuesday. Near 11:14 a.m. ET, the Dow was up 248 points, the S&P 500 was up 25 points, and the Nasdaq was up 63 points. The Dow gained about 50 points after news crossed that Germamy is up for settling for one Greek reform up front, according to Bloomberg. European stock markets also rallied on the news. Treasuries are selling off again, and the 10-year note yield is creeping towards 2.5%. It climbed to 2.493%, higher than the eight-month peak it reached on Tuesday. When bonds sell off and their prices fall, yields rise. Bloomberg reported that PIMCO's Total Return Fund slashed its holdings of government bonds by two thirds in May, right before the sell off we've seen this month. Overnight, the German 10-year bund yield crossed 1% for the first time since September. This is just weeks after the yield plunged to as low as 0.05% and there were concerns that German yields would also turn negative all the way out to 10 years. Crude oil is rallying again. West Texas Intermediate crude oil rose by more than 2% and crossed $61 per barrel, after crossing $60 on Tuesday. Brent crude, the international benchmark, was up by more than 1% at around $66 per barrel. The latest data from the Energy Information Administration showed that US crude oil inventories fell for a sixth straight period last week, by 1.9 million barrels. On Tuesday, the EIA's monthly short-term outlook forecast that US oil output will "generally decline" from 9.6 million barrels per day in May until early 2016. In company news, Target announced it is doubling its buyback program and raising its dividend; on Tuesday, it accidentally published the news and removed the information minutes later. And, shares of Johnson Controls were up about 4% in early trading after the company announced that it is considering options to spin off its auto parts division. Here's a chart showing the spike in stocks after the headline on Greece crossed: SEE ALSO: 10 things you need to know before the opening bell Join the conversation about this story » NOW WATCH: 5 morning rituals to keep you productive all day long
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