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U.S. Treasuries flat ahead of FOMC’s December meeting minutes, ISM December manufacturing PMI

The U.S. Treasuries traded flat Wednesday as investors wait to watch the Federal Open Market Committee’s (FOMC) December monetary policy meeting minutes, scheduled to be released today by 19:00GMT. Also, the country’s ISM manufacturing PMI for the month of December due later today will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries hovered around 2.46 percent, the super-long 30-year bond yields remained nearly flat 2.81 percent and the yield on the short-term 2-year steadied at 1.92 percent by 11:40GMT.

The US FOMC minutes from the Federal Reserve are a little more helpful (they are unlikely to reference sentiment surveys). Investors may be inclined to underestimate how many interest rate hikes will be required to maintain balance in the US economy. Investors need to be careful in interpreting the minutes as the composition of the FOMC does change significantly this year.

Meanwhile, the S&P 500 Futures traded 0.17 percent higher at 2,697.50 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -83.67 (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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