U.S. Treasuries flat ahead of Fed Chair Powell’s second testimony, June CPI

The U.S. Treasuries flattened during Thursday’s afternoon session, ahead of the Federal Reserve Chair Jerome Powell’s second testimony, scheduled to be held today by 14:00GMT, besides, the country’s consumer price inflation (CPI) data for June and a host of FOMC speeches, all scheduled for later today.

Further, the Fed’s latest monetary policy meeting minutes, scheduled to be released today at 23:30GMT, will provide further direction to the debt market.

The yield on the benchmark 10-year Treasury yield hovered around 2.065 percent, the super-long 30-year bond yields edged 1-1/2 basis points higher to 2.586 percent and the yield on the short-term 2-year traded steady at 1.812 percent by 12:00GMT.

This afternoon will see Fed Chair Powell repeat his semi-annual monetary policy testimony before the Senate, while the latest CPI figures for June will also attract attention. Downward pressure on energy prices is likely to see the headline CPI rate ease 0.2ppt to 1.6 percent y/y, while the core rate is expected to have moved sideways at 2.0 percent y/y, Daiwa Capital Markets reported.

Tomorrow will also bring weekly jobless claims figures and the Federal monthly budget statement. Supply-wise, the Treasury will sell 30-year bonds, the report added.

Meanwhile, the S&P 500 Futures traded tad 0.23 percent higher at 3,004.38 by 12:05GMT