U.S. Treasuries flat ahead of 30-year auction, initial jobless claims

The U.S. Treasuries traded flat ahead of the super-long 30-year bond auction and as investors wait to watch the country’s initial jobless claims, scheduled for release later today, besides, the FOMC member Dudley’s speech, due to be held today by 14:00GMT.

The yield on the benchmark 10-year Treasury, slipped 1/2 basis point to 2.23 percent, the super-long 30-year bond yields hovered around 2.81 percent and the yield on short-term 2-year note traded flat at 1.34 percent by 11:50GMT.

With few significant economic data releases today, financial markets focused on the heightening tension between the US and North Korea, with investors finding shelter in safe-haven assets. Nonetheless, market movements were very limited, and tail risk measures remained broadly stable.

Although the US Secretary of State played down Trump’s rhetoric, safe-haven bonds increased, with 10Y yields of US, German and UK bonds falling by around 5 bps. Safe-haven currencies such as the Japanese yen and the Swiss franc also appreciated, as did the US dollar, slightly, while currencies physically close to the conflict depreciated.

Moreover, gold prices increased. On the other hand, risk assets declined, with equity markets decreasing across the board, led by the banking sector -big names underperformed-, and implied volatility in the S&P500 (VIX) increasing up to 12

Meanwhile, the S&P 500 Futures traded 0.37 percent lower at 2,463.88 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 29.47 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest