U.S. Government bonds narrowly mixed ahead of CPI data, Yellen’s testimony

The United States Treasuries traded narrowly mixed Thursday as investors wary ahead of October consumer inflation data and the testimony from the Federal Reserve Chair Janet Yellen.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.21 percent, the yield on long-term 30-year Treasury climbed 1 basis point to 2.934 percent and the yield on short-term 2-year note slid 1/2 basis point to 1.001 percent by 12:00 GMT.

On Wednesday, Fed President James Bullard said that it would need a surprise for the Federal Reserve not to raise U.S. interest rates next month.

He said the only reason to hold off would be the kind of big shocks that caused it to pull back in the past, such as widespread global market volatility or bad U.S. jobs data, Reuters reported.

Also, previous heavy sell-off in government bonds was supported by rising expectations that the U.S. President-elect Donald Trump's policies, such as fiscal expansion and protectionism on international trade, could support growth and inflation.

Last week, the United States Republican candidate Donald Trump pinned his victory against Democrat opponent Hillary Clinton in the 2016 presidential election. Investors again revised the outlook for US interest rates after Donald Trump's victory, with the probability of a December rate hike by the Federal Reserve going from as low as 30 percent to as high as 94 percent.

Meanwhile, the S&P 500 Futures traded 3 points higher at 2,175.75 by 12:20 GMT. While at 12:00 GMT, the FxWirePro's Hourly Dollar Strength Index stood neutral at +19.53 (higher than +75 represents bullish trend).