U.S. Treasuries rebound sharply on steep global demand; investors eye 10-year auction

The U.S. Treasuries rebounded Tuesday, following sharp rise in global demand for safe-haven assets. Also, investors are curiously eyeing the 10-year auction scheduled to be held on April 12 for further direction in the debt market.

The yield on the benchmark 10-year Treasury remained jumped 1-1/2 basis points to 2.36 percent, the super-long 30-year bond yields rose 1 basis point to 2.96 percent and the yield on short-term 3year note also traded nearly 1 basis point higher at 1.25 percent.

The minutes from the Federal Reserve’s mid-March meeting will be closely eyed, mainly for one reason: Fed watchers are eager to see what members of the open market committee said about shrinking their USD4.5 trillion balance sheet.

This week, several participants have said that they expect the Fed to start reducing its balance sheet sometime this year. The minutes may provide important information on how close we are to changes in balance sheet policy.

Meanwhile, the S&P 500 Futures fell 0.06 percent at 2,351.00 by 12:10GMT, while at 12:50GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -11.27 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex