U.S. Treasuries gain ahead of August producer price index, FOMC members’ speeches

The U.S. Treasuries gained Wednesday ahead of the country’s producer price index (PPI) for the month of August and a host of speeches by FOMC members, scheduled for later in the day; St. Louis Fed President Bullard and member of the Fed’s Board of Governors Brainard are scheduled to deliver their speeches today by 13:30GMT and 16:45GMT respectively.

Also, the 10-year Note auction, due to be held today by 17:00GMT, will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries fell 1-1/2 basis points to 2.965 percent, the super-long 30-year bond yields also lost 1-1/2 basis points to 3.110 percent and the yield on the short-term 2-year too traded nearly 1-1/2 basis points lower at 2.740 percent by 10:40GMT.

In the US, ahead of tomorrow’s key CPI release, today will bring the first of the week’s inflation figures in the shape of the producer price report for August. The latest Fed Beige Book is also due, Daiwa Capital Markets reported.

Fed Governor Brainard and St Louis Fed President Bullard will both speak on the subject of the US economy and monetary policy. In addition, the US Treasury will sell 10-year Notes.  

Meanwhile, the S&P 500 Futures traded 0.03 percent higher at 2,890.75 by 10:45GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -17.23 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex