U.S. Treasuries gain amid muted trading session ahead of FOMC speeches, 2-year auction
The U.S. Treasuries gained during Monday’s afternoon session amid a muted trading session that witnessed data of little economic significance.
The yield on the benchmark 10-year Treasury yield plunged 7-1/2 basis points to 1.394 percent, the super-long 30-year bond yield also slumped 7-1/2 basis points to trade at 1.843 percent and the yield on the short-term 2-year lost nearly 7 basis points to 1.282 percent by 13:25GMT.
It’s set to be a quiet start to the week for economic data from the US, with the Chicago Fed national activity index today’s most notable release, followed by the Conference Board’s consumer confidence survey tomorrow, Daiwa Capital Markets reported.
Tuesday will also kick off the week’s housing market indicators with the FHFA and S&P Corelogic home prices indices for December, followed by new and existing home sales figures for January on Wednesday and Thursday respectively. Thursday will also bring revised Q4 GDP numbers – likely to confirm that growth was little changed from the initial estimate of 2.1 percent q/q annualized – as well as the more timely release of durable goods orders data for January.
Friday’s release of advance goods trade and inventories figures for January will also provide an update on economic activity at the start of the year, while personal income and spending data, including the monthly deflators, for the same month will also be closely watched, the report added.
Elsewhere, after Friday saw Brainard make the case for the Fed to be ready to use BoJ-style yield curve control in the face of the next downturn, the FOMC’s Mester, Clarida, Evans and Bullard are due to speak publicly this week, while in the markets the Treasury will sell 2Y notes tomorrow, 5Y notes and 2Y floating-rate notes on Wednesday and 7Y notes on Thursday, Daiwa further noted in the report.
Meanwhile, the S&P 500 Futures lost over -2.50 percent to trade at 3,254.62 by 13:30GMT.