U.S. Treasuries gain on expectations of fall in February consumer price inflation; FOMC remains in focus

The U.S. Treasuries gained Wednesday, following expectations of a fall in the country’s consumer price inflation (CPI) during the month of February. Also, investors are eyeing the Federal Open Market Committee’s (FOMC) monetary policy meeting, scheduled to be held on later in the day for detailed direction in the money market.

The yield on the benchmark 10-year Treasury fell nearly 1 basis point to 2.58 percent, the super-long 30-year bond yield also slid nearly 1 basis point to 3.16 percent and the yield on short-term 3-year note traded skid 1/2 basis point to 1.68 percent by 11:00GMT.

The Federal Reserve is expected to maintain a signal for three interest rate hikes this year in line with the message Chair Janet Yellen set in her recent speech. Further, the upbeat February jobs report has removed the pending obstacle for a rate hike at the monetary policy meeting, scheduled to be held on March 15.

Further, the Fed still awaits more information about 'Trumponomics' but previous meetings have revealed that 'almost all' Federal Reserve Open Market Committee (FOMC) members think there are upside risks to growth due to the expectations of more expansionary fiscal policy.

Lastly, markets have fully priced in a Fed hike this week. Further markets price a 50 percent probability of another hike in June and 2.7 hikes this year and nearly a total of five hikes before year-end 2018.

Meanwhile, the S&P 500 Futures rose 0.17 percent or 4.00 points to 2,367.00 by 11:00GMT, and at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -51.14 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex