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U.S. Treasuries suffer amid muted trading hours ahead of September retail sales

The U.S. Treasuries suffered during Monday’s afternoon session amid a muted trading day that witnessed data of little economic significance ahead of the country’s retail sales for the month of September, scheduled to be released on October 16 by 12:30GMT.

Further, a host of 3-tier economic data is due for release by end of this week, which shall add further direction to the debt markets.

The yield on the benchmark 10-year Treasury yield surged 2 basis points to 1.734 percent, the super-long 30-year bond yield also gained nearly 2 basis points to 2.197 percent and the yield on the short-term 2-year too traded 2 basis points higher at 1.598 percent by 12:25GMT.

In the US, it should be a quiet start to the coming week for economic releases with markets closed today for a national holiday and just the Empire Manufacturing index for October out tomorrow. Wednesday’s release of September retail sales figures will provide an insight into household consumption in the third quarter. That day will also bring business inventories numbers for August, the Fed’s latest beige book and the NAHB housing market index for October, Daiwa Capital Markets reported.

These will be followed on Thursday by industrial production numbers for September, which are expected to show renewed manufacturing weakness at the end of the quarter, albeit not fully reversing the increase in August.

That day will also bring September housing starts data, October’s Philly Fed index and weekly claims figures, followed on Friday by the Conference Board’s latest leading indicators.

In terms of Fed Speak, a number of voting FOMC members will be in action in the coming week including Bullard and George (tomorrow), Evans and Brainard (Wednesday), Evans, Bowman and Williams (Thursday) and Clarida (Friday). In the markets, the Treasury will sell 5-year TIPS on Thursday, the report added.

And, from tomorrow the New York Fed will undertake its new programme of T-bill purchases, at a rate of $60 billion per month, aimed at maintaining over time ample reserve balances and hence avoiding the pressures in funding markets that emerged towards the back end of last quarter, Daiwa further noted in the report.

Meanwhile, the S&P 500 Futures slipped -0.24 percent to trade at 2,964.12 by 12:30GMT.

By Debarati Bir
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