U.S. Treasuries slump ahead of Q3 GDP; investors await long year-end holidays

The U.S. Treasuries slumped during Friday’s afternoon session ahead of the country’s gross domestic product (GDP) for the third quarter of this year, scheduled to be released today by 13:30GMT. Also, investors are eyeing to wrap up their positions before the upcoming long Christmas and New Year holidays at least until the first week of January.

The yield on the benchmark 10-year Treasury yield jumped nearly 3 basis points to 1.936 percent, the super-long 30-year bond yield gained 2 basis points to 2.366 percent and the yield on the short-term 2-year traded nearly 2 basis points higher at 1.638 percent by 13:05GMT.

US Q3 GDP growth is also expected to be unrevised at 2.1 percent (annualised). Current evidence points to a similarly ‘decent’ outcome in Q4. A rise of 0.5 percent m/m is expected in this afternoon’s November personal spending figures, but the risks may be skewed to the downside after disappointing retail sales numbers last week, Lloyds Bank reported.

"We predict the PCE deflator (the Fed’s preferred inflation gauge) to move up to 1.6 percent y/y from 1.3 percent y/y, still below the Fed’s 2 percent inflation goal, but see the core measure remaining at 1.6 percent y/y," the report further commented.

Meanwhile, the S&P 500 Futures remained flat at 3,214.12 by 13:10GMT.