Stocks are expected to open higher this morning on news that Citi is in negotiations with the U.S. government to get increased aid.

According to The Wall Street Journal, the government (which has already invested $25 billion in the ailing financial institution) is being asked to increase its aid to Citi by as much as 40%. The government would convert its preferred shares to common shares, which would leave Citi shareholders with a diluted stake, the Journal said.

Stock markets around the globe were rising on the fact that the Obama administration was not planning to nationalize one or more of the big U.S. banks and was instead looking at ways to raise its stake in Citigroup Inc.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.84% from 2.79% late Friday. The yield on the three-month T-bill, . . .

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