The U.S. Treasuries jumped Tuesday in what looks set to be another relatively uneventful day for major economic news in the US, with the only data release of note being the NFIB small business sentiment survey. Perhaps more noteworthy to financial markets will be a speech by FOMC member Loretta Mester today by 13:00GMT.
The yield on the benchmark 10-year Treasuries plunged 2-1/2 basis points to 2.82 percent, the super-long 30-year bond yields slumped nearly 2 basis points to 3.11 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points lower at 2.06 percent by 10:50GMT.
The key day for global markets this week will be Wednesday when the US reports January CPI and retail sales. The former will be of particular interest to see whether the firmer momentum in core inflation seen in the closing months of last year has been sustained, especially in light of the current nervousness in bond markets. Headline retail sales will be weighed down by weaker auto sales, but core spending could well advance on the 0.4 percent m/m gain seen in December.
Further, a busy Thursday will see the release of the latest PPI and IP reports, the NAHB housing index, and New York and Philadelphia Fed manufacturing surveys. The week will close with the preliminary February University of Michigan consumer survey and January housing starts/permits data.
Meanwhile, the S&P 500 Futures slid 0.51 percent to 2,641.00 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -67.39 (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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