U.S. Treasuries edge tad higher ahead of short-term 2-year, 5-year auctions

The U.S. Treasuries edged tad higher during Monday’s afternoon session ahead of today’s short-term 2-year auction, scheduled to be held at 17:00GMT and 5-year auction, due tomorrow at the same time.

The yield on the benchmark 10-year Treasury yield slipped 1/2 basis point to 2.585 percent, the super-long 30-year bond yields remained tad lower at 2.990 percent and the yield on the short-term 2-year traded flat at 2.391 percent by 11:45GMT.

While focus this week will no doubt be on Friday’s first estimate of Q1 GDP – with expectations for a modest pickup in growth from 2.2 percent q/q annualised in Q4 to around 2-1/2 percent q/q annualized – today will bring the new home sales report for March and the Richmond Fed manufacturing survey for April, Daiwa Capital Markets reported.

With mortgage rates having fallen, sales of new homes have risen in recent months, although, in line with yesterday’s soft existing home sales release, the latest figures are expected to report a decline in March from an eleven month-high of 667k in February, the report added.

Meanwhile, the S&P 500 Futures edged tad lower to 2,902.88 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 75.43 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex