U.S. Treasuries remain flat ahead of FOMC speeches, 5-year auction

The U.S. Treasuries remained flat Friday as investors remain geared up to witness a host of speeches by the Federal Open Market Committee (FOMC) members by late today. Further, the country’s 5-year auction, due early next week will provide further direction to the bond market.

The yield on the benchmark 10-year Treasury, hovered around 2.15 percent, the super-long 30-year bond yields also traded flat at 2.73 percent and the yield on short-term 2-year note remained almost steady at 1.35 percent by 11:40GMT.

Oil prices pulled further away from this week’s multi-month low although market sentiment remained fragile amid prevailing supply jitters. In reaction to higher oil prices, the UST and Bund yield curve steepened. In FX markets, oil-related currencies retained a firm tone while GBP was among the main outperformers following hawkish comments by BoE Kristin Forbes, one of the three dissenters in favour of a rate hike at the June monetary policy meeting. 

Looking at the day ahead, the most interesting data releases include the flash Markit June euro area PMI readings and US new home sales for May. Today, many Fed members are also scheduled to speak including Federal Reserve Governor Jerome Powell, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester.

Meanwhile, the S&P 500 Futures traded flat at 2,433.00 by 12:40GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 70.77 (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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