U.S. Treasuries plunge ahead of 5-year auction, FOMC member Daly’s speech

The U.S. Treasuries plunged during Wednesday’s afternoon session, ahead of a busy day for economic data that brings the advance goods trade and inventories figures for May, as well as durable goods orders data for the same month.

Also, the 5-year note auction, scheduled to be held today at 17:00GMT and FOMC member Daly’s speech, due at 15:30GMT for added direction in the debt market.

The yield on the benchmark 10-year Treasury yield jumped 3-1/2 basis points to 2.026 percent, the super-long 30-year bond yields edged 1-1/2 basis points higher to 2.541 percent and the yield on the short-term 2-year surged 5-1/2 basis points to 1.761 percent by 11:25GMT.

In terms of the trade data, both exports and imports are likely to rebound from low-side readings in April. But imports seem likely to have greater upside potential, which should lead to a wider trade deficit, Daiwa Capital Markets reported.

After a flat April and declines in the previous two months, another subdued reading for durable goods ex-transportation seems highly likely given ongoing sluggishness of manufacturing output and heightened uncertainty about global trade and demand. Moreover, Boeing orders seem bound to add to the weakness, the report added.

Meanwhile, the S&P 500 Futures traded tad -0.15 percent lower at 2,947.62 by 11:30GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -31.07 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex