EM Asian currencies likely to advance if US and China make concrete progress in renewed trade negotiations, says Scotiabank
U.S. Treasury yields slump on hopes of 25bp Fed rate cut; Chair Powell’s post-conference speech eyed
Yuan exchange rate likely to be defended by Chinese regulators as long as trade talks continue, says Scotiabank
Likelihood of RBA adopting alternative policy measures rises with cash rate getting closer to effective lower bound, says ANZ Research
BoE likely to maintain guidance for gradually higher rates as long as Brexit has not been clarified, says DNB Markets
U.S. Treasuries suffer ahead of Fed Chair Powell, FOMC members’ speeches
The U.S. Treasuries suffered during Monday’s afternoon session, ahead of FOMC member Williams’ speech, due today at 12:50GMT, besides, a host of other speeches, lined up for tomorrow.
Also, the country’s retail sales for the month of June and Fed Chair Jerome Powell’s speech, scheduled for July 16 by 12:30GMT and 17:00GMT, will provide further direction to the debt market.
The yield on the benchmark 10-year Treasury yield gained 2 basis points to 2.125 percent, the super-long 30-year bond yields jumped 2-1/2 basis points to 2.656 percent and the yield on the short-term 2-year traded tad up at 1.845 percent by 11:20GMT.
The coming week's data-flow in the U.S. seems highly unlikely to do anything to shift the widely held expectations of a Fed rate cut at the end of this month. Nevertheless, tomorrow will be a busy day for key economic releases, including industrial production and retail sales figures for June.
Expectations are for retail sales growth to have slowed at the end of the second quarter, albeit in part due to lower gasoline prices weighing on the auto fuel component. Meanwhile, manufacturing output is likely to have posted a modest increase for the second successive month, following marked weakness in the first four months of the year, Daiwa Capital Markets reported.
Meanwhile, the S&P 500 Futures traded tad 0.17 percent higher at 3,020.62 by 11:25GMT