U.S. Treasuries flat ahead of November PPI data, Fed’s monetary policy decision

The U.S. Treasuries traded flat Tuesday as investors wait to watch the country’s producer price-led inflation index for the month of November, due later today. Also, the consumer price index (CPI), along with the FOMC policy decision and President Donald Trump’s speech will add direction to the debt market.

The yield on the benchmark 10-year Treasuries hovered around 2.38 percent, the super-long 30-year bond yields flat at 2.77 percent and the yield on the short-term 2-year too traded nearly steady at 1.82 percent by 10:30GMT.

Ahead of the conclusion of this year’s final FOMC meeting tomorrow, today brings only second-tier data from the US. Nevertheless, November’s PPI might gain some attention, with the headline index expected to rise 0.2 percent m/m not least due to higher gasoline prices, but the rise in the core component expected to be restrained to just 0.1 percent m/m by a moderation in services after surges in the prior two months.

In addition, given the recent ongoing progress on tax reform, the November NFIB small business sentiment index seems highly likely to remain elevated. The Federal budget statement for November is also due today. In the bond market, the Treasury will auction 30Y bonds.

Meanwhile, the S&P 500 Futures traded flat at 2,664.75 by 10:35GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -46.49 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest