U.S. Treasuries flat in muted trading ahead of 5-year auction

The U.S. Treasuries remained flat Tuesday in a muted trading session amid lack of economically significant data. Investors will focus today on the housing market. New home sales data for March alongside the FHFA and Case-Shiller house price indices will be released.

The yield on the benchmark 10-year Treasuries remained flat at 2.97 percent, the super-long 30-year bond yields hovered around 3.13 percent while the yield on the short-term 2-year traded nearly 1-1/2 basis points higher at 2.48 percent by 11:50GMT.

The Conference Board Consumer sentiment index, which will most likely echo an equivalent survey of the University of Michigan and show that consumer sentiment weakened in April, will also come out today. 

UST and German Bund yields were lower in early European trade on Tuesday and EMU periphery sovereign bonds retained a positive tone even though recent economic data point to a moderation in the pace of Eurozone economic growth and recent comments by a number of EU high-level officials suggest that the EU integration process has probably stalled.

In FX markets, the USD extended recent gains with the DXY index standing close to the highest level since mid-January. Looking at today’s calendar, the focus is on US CB consumer sentiment index for April and US March home sales ahead of the more crucial ECB policy meeting on Thursday and the US Q1 GDP report on Friday.

Meanwhile, the S&P 500 Futures rose 0.61 percent to 2,687.00 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 129.33 (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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