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U.S. Treasuries continue to gain ahead of weekly initial jobless claims, 30-year auction
The U.S. Treasuries continued to gain during Thursday’s afternoon session, ahead of the country’s weekly initial jobless claims, scheduled to be released today by 12:30GMT, and the super-long 30-year Note auction, also due later today by 17:00GMT.
The yield on the benchmark 10-year Treasury yield suffered nearly 1-1/2 basis points to 2.115 percent, the super-long 30-year bond yields slipped 1 basis point to 2.615 percent and the yield on the short-term 2-year slumped nearly 2-1/2 basis points to 1.866 percent by 11:35GMT.
While yesterday’s soft US inflation data further raised market expectations of a series of near-term Fed rate cuts, US equities declined once again (S&P500 closed down 0.2 percent). And with the Asian dataflow offering little cause for encouragement, and no good news on the trade war (indeed, Trump was again in belligerent mood, threatening sanctions on Germany over its Nord Stream 2 gas pipeline with Russia, most major equity indices in the region fell again today, Daiwa Capital Markets reported.
After yesterday’s soft CPI readings further boosted expectations of an imminent easing cycle (with fed funds futures now price a probability of greater than 50 percent that markets will see two cuts in the FFR by September) today will bring the usual US weekly jobless claims figures, as well as the latest monthly import and export price indices, the report added.
So, the annual rate of headline CPI is expected to have edged back below 2 percent y/y. Core inflation, meanwhile, is likely to have moved sideways at 2.1 percent y/y. Today will also bring the Federal monthly budget statement, while the Treasury will sell 10-year notes, the report added.
Meanwhile, the S&P 500 Futures traded tad 0.35 percent higher at 2,890.88 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 90.45 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex