The U.S. Treasuries plunged Monday ahead of the short-term 3-year note auction and the producer price index (PPI) data, scheduled to be released on April 10 by 17:00GMT and 12:30GMT respectively.
The yield on the benchmark 10-year Treasuries jumped 2-1/2 basis points to 2.79 percent, the super-long 30-year bond yields remained also climbed nearly 2-1/2 basis points to 3.03 percent and the yield on the short-term 2-year traded nearly a basis point higher at 2.28 percent by 11:25GMT.
Turning to the US, the March PPI will be of some interest tomorrow as a precursor to the March CPI report, which follows on Wednesday and will be the week’s highlight. The latter should see a step-up in annual core inflation to about 2.0 percent y/y, not least as the large decline in mobile services prices in March 2017 will fall out of the annual calculation, Daiwa Capital Markets reported in its latest research.
The remainder of the coming week’s diary is likely to attract less attention but includes the NFIB small business survey (today), February wholesale trade (Tuesday), March import prices (Thursday) and the February JOLTS report and preliminary April University of Michigan consumer survey (both on Friday). The Fed diary includes the minutes from the March FOMC meeting (Wednesday).
Meanwhile, the S&P 500 Futures rose 0.64 percent to 2,622.50 by 11:30GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -9.14 (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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