U.S. Treasuries lose ahead of FOMC policy meeting, ADP non-farm employment

The U.S. Treasuries lost ground Wednesday ahead of today’s FOMC monetary policy decision and the ADP non-farm employment change data.

The yield on the benchmark 10-year Treasury jumped nearly 2-1/2 basis points to 2.39 percent, the super-long 30-year bond yields also climbed close to 2-1/2 basis points to 2.89 percent and the yield on short-term 2-year note traded 1-1/2 basis points higher at 1.61 percent by 12:15GMT.

While the Fed is due later today to announce the outcome of its latest FOMC meeting, there seems no prospect of any change in policy.  Of course, investors will analyze the accompanying statement to see whether a hike at the December FOMC meeting looks any more or less likely. But it seems unlikely to add anything of substance – certainly, that decision next month remains data-dependent. On that score, the October manufacturing ISM and ADP employment reports are due today along with September construction spending figures.

Looking at the rest of the coming week’s US data diary, notable releases include the October auto sales and Q3 labor productivity (Thursday); and the October non-manufacturing ISM and full September trade report (Friday).

Meanwhile, the S&P 500 Futures traded 0.39 percent higher at 2,583.00 by 12:20GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -47.50 (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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