U.S. Treasuries steady ahead of FOMC members’ speeches, 3-year auction

The U.S. Treasuries remained steady ahead of FOMC members Bullard and Kashkari’s speech, scheduled to be held today by 15:45GMT and 17:25GMT respectively, besides the 3-year note auction, due on August 8.

The yield on the benchmark 10-year Treasury, rose 1 basis point to 2.28 percent, the super-long 30-year bond yields hovered around 2.85 percent and the yield on short-term 2-year note traded nearly 1 basis point higher at 1.36 percent by 11:50GMT.

The most noteworthy US data this week will come on Friday with July’s consumer price inflation. Principally reflecting the recent pickup in energy prices headline CPI is expected to post the first monthly increase in three to leave the year-on-year rate rising 0.2ppt 1.8 percent y/y. But this would still remain some way below the average so far this year. And core CPI is forecast to remain unchanged at 1.7 percent y/y for the third consecutive month, the joint-lowest rate for two years.

Ahead of this will bring consumer credit numbers (today), June’s JOLTS report and July’s small business confidence survey (tomorrow), quarterly labour productivity and costs figures (Wednesday) and PPI data, weekly jobless claims and the latest Federal budget statement (Thursday). In the markets, the Treasury will sell 3Y notes tomorrow, 10Y notes on Wednesday and 30Y bonds on Thursday.

Meanwhile, the S&P 500 Futures traded flat at 2,473.25 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 120.70 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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