The U.S. Treasuries jumped Tuesday as investors fled to safe-haven bonds amid a worsening equity sell-off. Treasuries have been on a wild ride over the past month, with yields steadily climbing throughout January as an improving economy spurred fears of inflation and increased borrowing costs.
The yield on the benchmark 10-year Treasuries plunged 6 basis points to 2.73 percent, the super-long 30-year bond yields slumped 3-1/2 basis points to 3.03 percent and the yield on the short-term 2-year traded 5 basis points lower at 2.03 percent by 11:00GMT.
The December full US trade report due later today will show a widening deficit – the merchandise trade deficit widened by USD1.6 billion USD71.6 billion and so, with the services balance expected to be little changed, an increase of the same magnitude is expected in the total trade deficit to USD52.1 billion to leave the full-year figure above USD550 billion, roughly USD50 billion higher than in 2016.
In addition, the JOLTS job openings data for December will also be released today. St Louis Fed President Bullard, who is an alternate FOMC member this year, will speak on the outlook for the US economy and monetary policy. In addition, the Treasury will sell 3-year Notes.
Meanwhile, the S&P 500 Futures traded 0.55 percent higher at 2,620.75 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 91.15 (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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