US Treasuries plunge on higher risk appetite

The US Treasuries witnessed selling across the curve on Wednesday as demand for safe haven assets waned in the wake of geopolitical tensions and post-Brexit instability. The yield on the benchmark 10-year Treasury note rose nearly 2 basis points to 1.573 percent and the yield on short-term 2-year note also bounced more than 1-1/2 basis points to 0.710 percent by 12:30 GMT.

According to a WSJ report, the Federal Reserve officials are looking more confidently toward an interest-rate increase before year-end, possibly as early as September. He further mentioned that financial markets have stabilized after the Brexit vote and the US economy have shown signs of picking up. It is almost certain to leave rates unchanged when they meet July 26-27.

In addition, a light flow of data continues on Wednesday, largely highlighted by weekly EIA Petroleum Status Report which could possibly serve to help re-stabilize oil prices. As mentioned previously, Fed commentary will likely be non-existent due to the media blackout period ahead of the July FOMC meeting.

Beyond the EIA report, markets also look ahead to Philadelphia Fed manufacturing, existing home sales and leading indicators releases on Thursday.

Meanwhile, the S&P 500 Futures rose 5 points to 2,163.5 by 12:30 GMT.