U.S. Treasuries maintain tight range as investors await August consumer prices, initial jobless claims

The U.S. Treasuries remained range-bound Thursday as investors wait to watch the country’s consumer price-led inflation index for the month of August, scheduled to be released today by 12:30GMT, besides, the initial jobless claims, also due today, which will provide further direction to the bond market.

The yield on the benchmark 10-year Treasury slid 1 basis point to 2.19 percent, the super-long 30-year bond yields flat at 2.79 percent and the yield on short-term 2-year note hovered around 1.35 percent by 10:55GMT.

US inflation data for the month of August lure market attention today ahead of next week’s FOMC monetary policy meeting. Consensus is for a 0.4 percent m/m rise in the headline, the largest monthly increase since January, mainly on the back of higher oil prices, with the annual rate expected to accelerate to 1.8 percent from 1.7 percent in July.

Due to clear signals of the balance sheet reduction to start soon it is widely expected that an announcement will take place at the upcoming meeting. The actual reduction will likely start from October, with the proposed USD10 billion per month. Elsewhere GDP-data has been strong, but hurricane effects will likely be negative in Q4. Inflation has remained low and will likely be monitored closely ahead of the December meeting.

Meanwhile, the S&P 500 Futures traded 0.05 percent lower at 2,493.25 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 112.03 (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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