Japan Warns Markets Over Yen Weakness 
Gold Plunges 4% as Treasury Yields Surge and Fed Rate Hike Bets Rise 
Australia Trade Surplus Shrinks Sharply as Imports Surge 
UK Housebuilder Stocks Surge on New First-Time Buyer Loan Scheme 
RBA Hikes Interest Rate to 4.60% as Inflation Risks Rise 
Asian Stocks Rise as Bond Yields Ease Ahead of U.S. Inflation Data 
Gold Rebounds as Oil Falls and Treasury Rout Eases 
Asian Stocks Fall as Bond Yields and Oil Prices Surge 
US Alcohol Ban Exposes Canada’s Internal Trade Barriers 
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The U.S. Treasuries continued to slide Tuesday in a muted trading session that witnessed data of little economic significance. Further, the country’s third-quarter gross domestic product (GDP), scheduled to be released on October 27 by 12:30GMT, besides, the 5-year auction due on October 25 by 17:00GMT will provide further direction to the debt market.
The yield on the benchmark 10-year Treasury jumped 2-1/2 basis points to 2.39 percent, the super-long 30-year bond yields climbed nearly 3 basis points to 2.91 percent and the yield on short-term 2-year note traded 1 basis point higher at 1.57 percent by 10:55GMT.
In the US, the focus in the coming week will likely be on Friday’s first estimate of Q3 GDP, with growth expected to have slowed to about 2.5 percent q/q annualized from 3.1 percent q/q ann. in Q2. However, ahead of Friday, estimates might well be refined depending on the outcome of Wednesday’s September durables goods orders report and Thursday’s advance September goods trade and inventory reports.
Other reports of note this week include tomorrow’s flash PMIs for October and the final University of Michigan consumer survey results for October (Friday). Adding to a busy diary, more than a third of the companies in the S&P500 will report their Q3 earnings. And while there is no Fed-speak due to the black-out period ahead of the November 1 FOMC meeting, investors will be attuned to any news on who President Trump might announce as his nominee to be the next Fed Chair when Janet Yellen’s current term expires.
Lastly, in the markets, the Treasury will sell 2Y notes on Tuesday, 5Y notes and 2Y FRNs on Wednesday, and 7Y notes on Thursday.
Meanwhile, the S&P 500 Futures traded 0.11 percent higher at 2,565.75 by 10:15GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 121.04 (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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