U.S. Treasuries trend lower ahead of ADP non-farm employment, Fed Chair Yellen’s speech

The U.S. Treasuries lost ground Tuesday amid a muted trading session that lacked data of major economic significance. Also, investors wait to watch the ADP non-farm employment change data for September and Fed Chair Janet Yellen’s speech, scheduled for October 4 by 12:15GMT and 19:15GMT.

The yield on the benchmark 10-year Treasury rose nearly 2-1/2 basis points to 2.36 percent, the super-long 30-year bond yields held climbed 3-1/2 basis points to 2.89 percent and the yield on short-term 2-year note also traded nearly flat at 1.49 percent by 10:50MT.

Market focus remains on developments in Catalonia following Sunday’s violence-marred independence referendum. Catalonia government announced that the unilateral declaration of independence will remain on hold awaiting the international community, primary the EU, to intervene on the state government’s behalf following the violent methods the latter employed on Sunday in an effort to prevent the independence referendum.

Against this background, Spanish government bonds remained under pressure for the second consecutive session with the 10-yr yield rising to 1.7 percent in European trade on Tuesday, the highest since mid-July, with the spread against its German counterpart reaching a multi-month high.

Meanwhile, the S&P 500 Futures traded 0.06 percent lower at 2,527.50 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 76.68 (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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