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U.S. Treasuries dip in ahead of 10-year auction, February consumer price inflation data

The U.S. Treasuries climbed Monday ahead of the 10-year auction, scheduled to be held today by 17:00GMT and the country’s consumer price inflation index for the month of February, due on March 13 by 12:30GMT.

The yield on the benchmark 10-year Treasuries rose 1 basis point to 2.90 percent, the super-long 30-year bond yields hovered around 3.16 percent and the yield on the short-term 2-year traded tad higher at 2.27 percent by 11:50GMT.

Turning to the US, as the focus begins to turn to next week’s FOMC meeting, most interest in the coming week will center on tomorrow’s CPI report for February, especially following the upside surprise reported last month. Surveys suggest that that the market expects a 0.2 percent m/m lift in the core index, which would leave annual inflation steady at 1.8 percent y/y. A day later attention will turn to February producer price and retail sales data (a rebound in sales seems likely after poor weather weighed in January). 

On Thursday, the February New York and Philadelphia Fed manufacturing surveys will be released, together with the NAHB housing index for the same month. A busy weekend on Friday with the release of the preliminary University of Michigan consumer survey for March, together with IP, housing starts and building permits for February, and the JOLTS report for January. In the bond market , he Treasury will auction 3Y and 10Y notes today and 30-year USTs tomorrow.

Meanwhile, the S&P 500 Futures rose 0.05 percent to 2,740.75 by 11:55GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 3.58 (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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