US Treasuries flat in subdued trade, employment report eyed

The US Treasuries were little changed on Wednesday during a relatively quiet session that was largely highlighted by the June personal income and spending release that reflected solid consumer support seen in the advance 1Q16 GDP release.

The yield on the benchmark 10-year Treasury note hovered around 1.53 percent mark and the yield on short-term 2-year note remained steady at 0.67 percent by 12:30 GMT.

The United States personal income and spending rose 0.4 percent m/m, just above expectations for a +0.3 percent m/m increase, as compared to the unrevised +0.4 percent m/m reading seen in May. Additionally, personal income came in +0.2 percent m/m in June, just below expectations for a +0.3 percent m/m increase, from the unrevised +0.2 percent m/m reading that occurred in May.

Moreover, markets now look ahead to the ADP employment estimate on Wednesday (market expectations are set for a 170k result), accompanied later by Markit US services PMI and ISM Non-manufacturing releases later in the morning.

However, investor’s key focus for the week will remain on the July employment report, which is scheduled to be released on Friday.

Meanwhile, the S&P 500 Futures traded 3 points lower at 2,150 by 12:40 GMT.