U.S. Treasuries trade flat as markets digest FOMC rate hike, decline in initial jobless claims

The U.S. Treasuries traded flat Friday after markets seem to have digested the Federal Reserve’s rate hike action late Wednesday and the fall in the country’s initial jobless claims for the week ended March 11, released Thursday.

The yield on the benchmark 10-year Treasury hovered around 2.52 percent, the super-long 30-year bond yield traded flat at 3.13 percent and the yield on short-term 2-year note traded 1/2 basis point higher at 1.33 percent by 11:40GMT.

The USD remained under pressure against its major currency peer while US Treasuries’ positive reaction to the less hawkish than expected FOMC monetary policy statement was short-lived.

The report said initial jobless claims edged down to 241,000, a decrease of 2,000 from the previous week's unrevised level of 243,000. Economists had expected jobless claims to dip to 240,000. Further, the report showed that the four-week moving average inched up to 237,250, an increase of 750 from the previous week's unrevised average of 236,500.

Meanwhile, the S&P 500 Futures remained steady at 2,378.50 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -88.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex