U.S. Treasuries gain ahead of President Trump’s speech, FOMC policy meeting

The U.S. Treasuries remained tad higher Tuesday as investors wait to watch the country’s President Donald Trump deliver a speech today by 14:30GMT, besides, the Federal Open Market Committee (FOMC) policy decision, scheduled to be unveiled on September 20 by 18:00GMT.

The yield on the benchmark 10-year Treasury slipped nearly 1 basis point to 2.22 percent, the super-long 30-year bond yields down 1 basis point at 2.79 percent while the yield on short-term 2-year note traded nearly flat at 1.39 percent by 10:50GMT.

The Fed is expected to announce, at its FOMC meeting tomorrow, its intention to start unwinding its balance sheet. The Fed intends to start slowly at USD10 billion a month, and increase the pace by USD10 billion a quarter depending on the economy, to a max monthly pace of USD50 billion. Markets have also started pricing in the prospect of a third Fed hike this year.

Meanwhile, the S&P 500 Futures traded 0.09 percent higher at 2,504.50 by 10:45GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -43.46 (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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