U.S. Treasuries jump ahead of 5-year auction, series of corporate earnings

The U.S. Treasuries jumped during Wednesday’s afternoon session ahead of today’s 5-year auction, scheduled to be held at 17:00GMT.

Investors will now be tracking corporate earnings, which have been better-than-expected till date, which encouraged bond traders to weigh up whether the Federal Reserve could perhaps return to a more hawkish stance. 

The yield on the benchmark 10-year Treasury yield plunged 3 basis points to 2.540 percent, the super-long 30-year bond yields suffered nearly 2 basis points to 2.963 percent and the yield on the short-term 2-year plunged 3-1/2 basis points to 2.330 percent by 11:50GMT.

Following the upwards surprise to yesterday’s new home sales figures, which rose 4.5 percent m/m in March to record the second highest level in this business cycle, it should be a quiet day for economic news in the US with just weekly mortgage applications numbers due for release, while the Treasury will sell 2-year floating-rate notes and 5-year fixed-rate notes, Daiwa Capital Markets reported.

Meanwhile, the S&P 500 Futures remained flat at 2,937.38 by 11:55GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 101.97 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex