U.S. Treasuries slump in subdued trading session

The U.S. Treasuries lost amid a silent trading session that witnessed data of little economic significance and despite disappointment in the country’s labour market report for the month of May, released end of last week.

The yield on the benchmark 10-year Treasury, jumped 2-1/2 basis points to 2.18 percent, the super-long 30-year bond yields climbed 2 basis points to 2.83 percent and the yield on short-term 2-year note traded nearly 1-1/2 basis points higher at 1.30 percent by 10:50GMT.

Friday’s US nonfarm payrolls also disappointed at 138k (well short of consensus expectations), coupled with the -66k revision to the prior two months’ data, even though the unemployment rate fell to a 16-year low of 4.3 percent.

The Federal Reserve 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.

Lastly, Former FBI Director Comey’s testimony before a Senate Intelligence Committee is scheduled on June 8 amid investigations into the Russia probe.

Meanwhile, the S&P 500 Futures traded 0.12 percent lower at 2,435.25 by 11:10GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -61.54 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex