The U.S. Treasuries were little changed during a relatively quiet Monday session that witnessed data of little significance. The yield on the benchmark 10-year Treasury note hovered around 1.84 percent mark, the yield on long-term 30-year Treasury fell 1 basis point to 2.60 percent and the yield on short-term 2-year note as dipped nearly 1 basis point to 0.84 percent by 12:10 GMT.
On Friday, the United States advance third-quarter GDP reading increased 2.9 percent, above market expectations for a 1.3 percent result, as compared to the revised 1.4 percent reading seen in the second quarter of 2016. Personal consumption increased 2.1 percent, from the 4.3 percent reading seen in the second quarter of 2016.
Also, Core PCE increased 1.7 percent, following the 1.8 percent increase seen in the second-quarter. Exports increased 10.0 percent, alongside a 2.3 percent increase from imports. According to the release, upward pressure from private inventories contributed 0.61 percent to the headline estimate, versus -1.16 percent seen in the second quarter.
On the other hand, residential investment decreased 6.2 percent in the third-quarter of 2016, versus the 7.7 percent decrease seen in the previous quarter. Alongside the improved headline result, this report clearly reflects the mixed tone of data seen throughout the quarter. Given the magnitude of the inventories decline, we see this potentially signaling positive momentum on this front in the second half of 2016.
Markets now look ahead to a heavy flow of data this week, highlighted by the October employment report on Friday. Overall, markets are looking for continued gains around the 175k-mark, coupled with a pullback in the headline unemployment rate to 4.9 percent. Earlier in the week, markets also receive personal income/spending, ISM manufacturing/non-manufacturing, construction spending, vehicle sales trade balance and the ADP employment estimate.
Meanwhile, the S&P 500 Futures traded 2.75 points higher at 2,126.25 by 12:10 GMT.


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