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U.S. Treasuries remain on falling spree as Fed interest rate outlook continues to weigh amid muted trading

The U.S. Treasuries continued to fall Friday after the Federal Reserve kept its interest rates outlook unchanged in its last monetary policy meeting of this year concluded Wednesday.

The yield on the benchmark 10-year Treasuries climbed 1-1/2 basis points to 2.36 percent, the super-long 30-year bond yields rose nearly 1 basis point to 2.72 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points higher at 1.82 percent by 10:20GMT.

As expected by everyone, the Fed hiked the target range by 25 basis points to 1.25-1.50 percent. In line with market expectations, the median dots still signal three hikes in 2018 and slightly more than two in 2019. The longer-run dot was unchanged at 2.75 percent. The Fed still says that it is monitoring inflation ‘closely’. The Fed said it will stop commenting on the balance sheet reduction at every meeting and it will just run in the background unless something happens.

In the US, the November industrial production report is due along with the Empire Manufacturing survey for December. As far as the IP data go, firm job growth in the factory sector, as well as a buoyant production index on the ISM survey, suggests that we should see another solid gain in manufacturing output in November.

Moreover, higher crude oil prices are also likely to have incentivized greater activity in the mining sector. All in, our US chief economist Mike Moran looks for a gain of 0.5 percent m/m following growth of 0.9 percent m/m in October.

Meanwhile, the S&P 500 Futures traded 0.16 percent higher at 2,660.35 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -104.27 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

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January 19 15:30 UTC Released

USECRI Weekly Annualized

Actual

4.5 %

Forecast

Previous

3.3 %

January 19 15:30 UTC Released

USECRI Weekly Index

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150.3 %

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Previous

147.6 %

January 21 02:00 UTC 10411041m

PHGDP YY

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6.9 0

January 21 02:00 UTC 10411041m

PHGDP QQ

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Previous

1.3 0

January 21 21:00 UTC 21812181m

KRPPI Growth YY

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Previous

3.1 %

January 21 21:00 UTC 21812181m

KRPPI Growth

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Previous

-0.1 %

January 21 23:00 UTC 23012301m

JPReuters Tankan DI

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Previous

27 k

January 22 07:00 UTC 27812781m

NOIndus Confidence

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Forecast

Previous

2 0

January 22 08:00 UTC 28412841m

TWJobless Rate

Actual

Forecast

Previous

3.69 0

January 22 08:00 UTC 28412841m

TWExport Orders YY

Actual

Forecast

Previous

11.6 0

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