U.S. Treasuries plunge ahead of 5-year auction, Fed’s monetary policy decision

The U.S. Treasuries plunged Tuesday ahead of the country’s 5-year auction, scheduled to be held today by 17:00GMT. Also, this week’s two-day FOMC meeting that concludes on Wednesday, will be closely eyed.

The yield on the benchmark 10-year Treasuries jumped 2-1/2 basis points to 3.102 percent, the super-long 30-year bond yields surged 3 basis points to 3.239 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points higher at 2.839 percent by 09:50GMT.

Ahead of tomorrow’s key FOMC announcements, today brings the results of the Conference Board’s consumer survey and Richmond Fed’s manufacturing indices for September, as well as the FHFA and S&P CoreLogic Case-Shiller home price data for July. The U.S. Treasury will sell 2-year FRNs and 5-year Notes.

With a further 25 basis points hike in the FFR range (to 2.00-2.25 percent) seemingly a done deal, the main focus for investors will be on the Fed’s updated forecasts, and associated commentary, and what this implies for the likelihood of further policy action at future meetings.

Meanwhile, the S&P 500 Futures traded 0.15 percent higher at 2,928.75 by 10:05GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -16.34 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex