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U.S. 10-year Treasury yields hit near 2-month low as UK PM May confirms Brexit deal

The U.S. 10-year Treasury yields hit nearly 2-month low Tuesday, following comments from the United Kingdom Prime Minister Theresa May, confirming the execution of the Brexit deal, along with a Parliament vote on the issue.

Also, investors are awaiting the Federal Open Market Committee (FOMC) members Lael Brainard and John C. Williams speech later in the day.

The yield on the benchmark 10-year Treasury fell nearly 6 basis points to 2.30 percent, the super-long 30-year bond yield also plunged 4 basis points to 2.94 percent and the yield on short-term 2-year note moved 2 basis points to 1.17 percent by 12:00 GMT.

PM May, said that wants the UK to emerge from this period of change as a stronger, fairer and more outward looking economy and wants Britain to be a secure, prosperous country and a magnet for talent, thus confirming the exit from the European Union.

She further added that being out of the EU but a member of the single market would mean being subject to rules without a say in them. Says staying in the single market would mean not leaving the EU at all. Her comments seemed prevaricative, adding that the govt will put the final agreement to a vote in both houses of Parliament.

Lastly, investors will remain keen to focus on Federal Reserve Chair Janet Yellen’s speech on January 18 amid a host of upcoming economic data and events, highlighted by consumer price inflation, industrial production and housing starts. Also, the U.S President-elect Donald Trump’s speech on January 20 and the 10-year bond auction prior to that on Thursday will remain major market movers.

Meanwhile, the S&P 500 Futures traded 7 points or 0.31 percent lower at 2,265.50 by 12:40 GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -148.60 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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