U.S. Treasuries jump ahead of Q4’18 GDP, initial jobless claims data; FOMC speeches too eyed

The U.S. Treasuries jumped during late European session Thursday ahead of the country’s Q4 2018 gross domestic product (GDP), scheduled for release today by 13:30GMT. Also, the initial jobless claims and a host of FOMC members’ speech, also scheduled for later today will add further direction in the debt market.

Members of the Federal Open Market Committee (FOMC), namely, Bostic, Harker and Kaplan will deliver their respective speeches, today by 13:50GMT, 16:00GMT and 18:00GMT respectively.

The yield on the benchmark 10-year Treasury yield slumped 2 basis points to 2.674 percent, the super-long 30-year bond yields traded nearly 1-1/2 basis points lower at 3.056 percent and the yield on the short-term 2-year plunged nearly 2-1/2 basis points to 2.484 percent by 11:40GMT.

In the US, all eyes today will be on the delayed first release of Q4 GDP. While data published earlier this week showed a (likely unintentional) pickup in inventories in December, yesterday’s trade figures disappointed suggesting overall GDP growth of around 2 percent q/q annualised, down from the 3.2 percent q/q ann. rate of the first three quarters of last year, Daiwa Capital Markets reported.

Today will also bring weekly initial claims figures and February’s Chicago PMI. A number of Fed Governors will speak publicly, including Vice-Chair Clarida, Bostic, Harker and Kaplan, the report added.

Meanwhile, the S&P 500 Futures edged 0.28 percent lower to 2,787.12 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at --4.80 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex