U.S. Treasuries plunge on expectations of upbeat CPI, Yellen’s speech in focus

The U.S. 10-year Treasuries plunged Wednesday, following expectations of an upbeat consumer price inflation data, scheduled to be released Wednesday by 13:30GMT. Also, investors are now looking forward to a speech by the Federal Reserve Chair Janet Yellen, coupled with that by the Federal Open Market Committee (FOMC) members Robert S. Kaplan and Neel Kashkari.

The yield on the benchmark 10-year Treasury fell nearly 3-1/2 basis points to 2.36 percent, the super-long 30-year bond yield also plunged nearly 3-1/2 basis points to 2.96 percent and the yield on short-term 2-year note moved nearly 2 basis points to 1.17 percent by 12:08 GMT.

Further, the Governor of the Federal Reserve Bank of San Francisco John C. Williams remained optimistic in his speech Tuesday about the economic growth of the country. Also, he hinted at three gradual interest rate hikes this year, coupled with expectations of an upbeat CPI, scheduled for release today.

Lastly, investors will remain keen to focus on a host of upcoming economic data and events, highlighted by consumer price inflation, industrial production and housing starts through the week. Also, the U.S President-elect Donald Trump’s speech on January 20 and the 10-year bond auction prior to that on Thursday will remain major market movers.

Meanwhile, the S&P 500 Futures traded 0.50 points or 0.02 percent higher at 2,263.25 by 12:15GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -94.10 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex