U.S. Treasuries slump ahead of initial jobless claims, May employment report

The U.S. Treasuries slumped Thursday as investors await the release of initial jobless claims, scheduled to be released later in the day. Further, the country’s employment report for the month of May, due for release on June 2, will provide further direction in the debt market.

The yield on the benchmark 10-year Treasury, rose 1-1/2 basis points to 2.87 percent, the super-long 30-year bond yields also climbed 1-1/2 basis points to 2.87 percent and the yield on short-term 2-year note traded nearly 1-1/2 basis points higher at 1.29 percent by 10:50GMT.

Elsewhere, the EUR/USD retained a firm tone for the second consecutive session favoured by weaker-than-expected US housing related data which added to the view that the Federal Reserve may not rush to deliver an additional rate hike soon after the June monetary policy meeting, where the likelihood of a 25 basis points increase is currently priced-in with a probably of around 90 percent.

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.

Meanwhile, the S&P 500 Futures traded 0.09 percent higher at 2,413.25 by 11:10GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 0.31 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex