U.S. Government bonds plunge ahead of Fed policymakers’ speech; 10-year yields up 15bps

The United States Treasuries plunged Monday as heavy sell-off 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.

The United States benchmark 10-year Treasury yield bounced 15 basis points to 2.242 percent for the first time in 2016. Also, 30-year Treasury yields jumped above 3 percent mark for the first time since the start of this year.

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 84 percent.

Additionally, the fall in the number of people opting for unemployment benefits in the United States has strengthened the probability of a December interest rate hike by the Federal Reserve.

Markets now look ahead to Fed policymakers’ speeches, including FOMC Member Robert Steven Kaplan, Richmond President Jeffrey Lacker and John William.

Meanwhile, the S&P 500 Futures traded 1 point higher at 2,162.50 by 12:30 GMT. While at 12:00 GMT, the FxWirePro's Hourly Dollar Strength Index stood neutral at 50.44 (higher than 75 represents bullish trend). For more details, visit http://www.fxwirepro.com/currencyindex