U.S. Treasuries lose temper ahead of Fed’s monetary policy decision

The U.S. Treasuries lost temper ahead of the upcoming Federal Reserve’s first monetary policy meeting of 2017, scheduled to be held on February 1.

The yield on the benchmark 10-year Treasury climbed 1 basis point to 2.48 percent, the super-long 30-year bond yield also rose 1-1/2 basis points to 3.07 percent and the yield on short-term 2-year traded nearly 1 basis point higher at 1.22 percent by 12:20 GMT.

The United States real gross domestic product (GDP) grew by 1.9 percent y/y in the fourth quarter according to the advance estimate, falling short of the median consensus estimate of 2.2 percent.

The Fed will take a pass at this week's FOMC meeting. The median policy participant forecasts just three 25 basis points rate hikes this year and incoming data offers no surprises to force one of those this month; however, March, remains in play.

Further, President Donald Trump reigned in an aggressive immigration policy that restricts entry into the country for travellers from seven Muslim-majority nations. Large number protests hauled in response to this, after hundreds of people arriving at the U.S. airports were suspended entry from Syria, Iraq, Iran and four other countries on national security grounds.

Lastly, the Trump is also scheduled to unleash his budget proposals on February 6, which is widely expected to reveal the details which markets need to further propel Trump trades.

Meanwhile, the S&P 500 Futures traded 6 point or 0.26 percent lower at 2,283 by 12:20GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 168.04 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex