U.S. Treasuries climb ahead of November retail sales, December manufacturing PMI data

The U.S. Treasuries climbed during late afternoon session Friday ahead of the country’s retail sales data for the month of November, scheduled to be released today by 13:30GMT. The headline retail figure is likely to come in on the soft side weighed by a slowing of new auto sales and lower prices of gasoline, although a decent showing around the Thanksgiving Holiday should provide some support.

The yield on the benchmark 10-year Treasuries slumped 3 basis points to 2.881 percent, the super-long 30-year bond yields fell 2 basis points to 3.143 percent and the yield on the short-term 2-year remained 3 basis points lower at 2.731 percent by 11:40GMT.

The United States’ November core CPI is expected to rise a moderate 0.2 percent m/m. That would likely nudge the annual core inflation rate back up 0.1ppt to 2.2 percent y/y.

With energy prices likely to have declined, meanwhile, headline CPI might come in at zero on a monthly basis, which would likely take the annual headline rate down 0.3ppt, also to 2.2 percent, Daiwa Capital Markets reported.

Meanwhile, the S&P 500 Futures slipped 0.90 percent to 2,621.00 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 79.41 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex