U.S. Treasuries flat in timid session ahead of FOMC member Harker’s speech

The U.S. Treasuries traded range-bound Tuesday as investors await FOMC member Harker’s speech, scheduled to be held today by 17:00GMT.

The yield on the benchmark 10-year Treasury flat at 2.31 percent, the super-long 30-year bond yields steady at 2.82 percent and the yield on short-term 2-year note hovered around 1.53 percent by 10:45GMT.

Short-term UST bond yields moved higher on newswires conveying that Stanford University economist John Taylor made a positive impression on Donald Trump at an interview on Wednesday as the US President seeks candidates for the post of the new Fed Chairman.

Taylor has criticized the Fed’s easy-money stimulus policies since the financial crisis and has pushed for the adoption of a ruled-based monetary policy, known as the Taylor rule, to guide the Fed’s interest-rate decisions that implies the need for much higher interest rates than the current target range of 1.00 percent-1.25 percent.

The September IP report due later today is expected to show a modest increase circa 0.5 percent m/m not least given the strong manufacturing ISM (60.8, the highest since 2004) and the fact that the impact of Hurricane Irma seemed to be less disruptive than Hurricane Harvey. September import price data are also due.

Meanwhile, the S&P 500 Futures traded flat at 2,555.50 by 10:50GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 71.15 (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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