The U.S. Treasuries traded down during late afternoon session Tuesday ahead of the country’s producer price index (PPI) data for the month of November, scheduled to be released today by 13:30GMT.
Also, the short-term 3-year auction, due today by 18:00GMT will add further direction to the debt market.
The yield on the benchmark 10-year Treasuries jumped nearly 3-1/2 basis points to 2.888 percent, the super-long 30-year bond yields surged nearly 2-1/2 basis points to 3.151 percent and the yield on the short-term 1-year remained 3 basis points higher at 2.756 percent by 11:20GMT.
Today’s headline PPI inflation figures for November is expected to be weighed down by the slump in energy prices, as will Wednesday’s headline CPI for November. The expected 0.2 percent m/m increase in the core CPI would likely nudge the respective annual inflation rate back up 0.1ppt to 2.2 percent y/y, however, Daiwa Capital Markets reported.
Finally, on Friday the retail sales and IP reports for November will cast further light on how activity is tracking during Q4, with October business inventory data and the little-followed flash December PMIs also released that day.
With the December 18-19 FOMC meeting looming there are no Fed speaking engagements over the coming week. In the markets, the US Treasury will issue 3-year notes tomorrow, 10-year notes on Wednesday and 30-year bonds on Thursday.
Meanwhile, the S&P 500 Futures rose 0.49 percent to 2,655.62 by 11:15GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 40.60 (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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