US Treasuries plunge in quiet trading session; Yellen’s Jackson Hole speech eyed

The US Treasuries saw downward pressure across the curve Tuesday during a relatively quiet Tuesday session light on significant economic data. Also, investors drove out from safe-haven buying after US Fed rate hike speculation gathered steam following hawkish comments from the Fed policymakers.

The yield on the benchmark 10-year Treasury note rose 2-1/2 basis points to 1.565 percent, the yield on 5-year note climbed 2 basis points to 1.153 percent and the yield on short-term 2-year note also bounced 1 basis point at 0.754 percent by 12:30 GMT.

Over the weekend, Federal Reserve Vice Chairman Stanley Fischer stroke a hawkish tone during a speech in Colorado, saying that, looking ahead, he expects GDP growth to pick up in the coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes.

Moreover, Fischer signalled that this year interest rate hike is still on the table and added that the US economy is very near to meeting the Federal Reserve’s goals.

Markets now await another light flow of data on Tuesday, highlighted by new home sales and Markit US manufacturing PMI data, followed by a 2-year note auction later in the session. However, markets are likely to maintain recent ranges in the lead up to Fed Chair Yellen’s Jackson Hole speech on Friday.

Meanwhile, the S&P 500 Futures traded 4.75 points higher at 2,186.25 by 12:30 GMT.