US Treasuries flat in subdued trade

The US Treasuries were little changed during a relatively quiet session as markets continue to search for direction in the wake of the weaker than expected May employment report. The yield on the benchmark 10-year Treasury note hovered at 1.71 percent mark and the yield on short-term 2-year Treasury note remained steady at 0.79 percent by 12:45 GMT.

On Tuesday, the short-term 2-year yield saw some downward pressure on the session, while breaking back below 0.80 percent, alongside a greater decrease in the benchmark 10-year yield, pushing back towards 1.70 percent.

The MBA Mortgage Applications Index increased 9.3 percent for the week ending 3 June. According to the release, upward pressure stemmed increases in both new purchases (+12.0 percent) and refinancing activity (+7.0 percent). Meanwhile, the FRM 30-year decreased to 3.83 percent, down from 3.85 percent.

The US bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Federal Reserve's target. Today, crude oil prices jumped beyond $50 mark by hitting 2016 high as supply disruptions in Nigeria and likely declines in the U.S. crude inventories and production fuelled bullish sentiment. The International benchmark Brent futures rose 1.54 percent to $52.23 and West Texas Intermediate (WTI) jumped 1.17 percent to $50.95 by 12:10 GMT.

Markets now look ahead to JOLTS and Quarterly Services Survey (QSS) releases that could provide a boost to both the employment picture (from JOLTS) and upward revisions for GDP (from QSS), followed by a 10-year Note auction later in the session.

Meanwhile, S&P 500 Futures rose 4 points to 2,114 by 12:45 GMT