U.S. Treasuries skid ahead of non-farm payrolls report, initial jobless claims

The U.S. Treasuries slid ahead of the Federal Open Market Committee (FOMC) member Williams’ speech, due to be held on June 1, besides, the ADP non-farm employment and initial jobless claims, scheduled to be released on the same day.

The yield on the benchmark 10-year Treasury, rose 1/2 basis point to 2.22 percent, the super-long 30-year bond yields hovered around 2.88 percent and the yield on short-term 2-year note traded tad 1/2 basis point higher at 1.29 percent by 10:50GMT.

Fed policymakers' current forecasts on key short-term rates signalled they expect two more rate increases by year-end. Off late, the futures market implied traders priced in an 83 percent chance of a quarter-point rate increase at the Fed's June 13-14 meeting, while they saw slightly less than a 50 percent shot of another hike by the end of 2017, CME Group's FedWatch tool showed.

For the remainder of the day, US ADP employment report for May takes centre stage ahead of Friday’s non-farm payrolls report. In addition, the Fed will release its Beige Book.

Meanwhile, the S&P 500 Futures traded 0.11 percent higher at 2,413.50 by 11:10GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bearish at -127.38 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex