U.S. Treasuries remain flat in mild trading session; lacks significant economic data

The U.S. Treasuries remained flat as investors remained side-lined in the absence of major trading activity amid a mild session that witnessed data of little economic significance. Major global equity markets were slightly firmer in early trade supported by higher oil prices amid increased expectations that OPEC and non-OPEC members will agree at the May 25 meeting to extend production cuts into 2018.

The yield on the benchmark 10-year Treasury, which moves inversely to its price, hovered around 2.33 percent, the super-long 30-year bond yields traded flat at 2.99 percent while the yield on short-term 2-year note rose 1/2 basis point to 1.29 percent by 11:50GMT.

In FX markets, the greenback moved lower, following weaker-than-expected US retail sales and inflation data, which raised questions over whether the Fed would be inclined to raise interest rates by more than once by the end of this year. Elsewhere, fixed income safe-havens retained a firm tone.

Russia’s and Saudi Arabia’s oil ministers remarked that oil production cuts otherwise scheduled to expire in June should be extended through to March 2018 which is three months longer than previously suggested.

Lastly, the U.S. Treasuries have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures climbed 2.95 percent to USD52.33 and West Texas Intermediate (WTI) jumped nearly 3 percent to USD49.25 by 10:00 GMT.

Meanwhile, the S&P 500 Futures traded 0.12 percent higher at 2,391.50 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -122.95 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex