U.S. Treasuries remain flat ahead of March producer price inflation data, host of FOMC speeches

The U.S. Treasuries remained flat during Thursday’s afternoon session ahead of the country’s producer price inflation (CPI) data for the month of March, scheduled to be released today by 12:30GMT.

Also, FOMC members Clarida, Williams, Bullard, Quarles, Kashkari and Bowman are scheduled to deliver their speeches later in the day, besides, the super-long 30-year auction, due today at 17:00GMT will add detailed direction to the debt market.

The yield on the benchmark 10-year Treasury yield remained flat at 2.476 percent, the super-long 30-year bond yields hovered around 2.902 percent and the yield on the short-term 2-year too remained steady at 2.332 percent by 11:40GMT.

In addition to the latest the weekly claims figures (the last set of which were very encouraging), today will bring PPI figures for March. Higher gasoline prices in March are expected to give headline PPI a boost, while a jump in charges for transportation and warehouse services is also likely after a surprisingly sharp decline in February, Daiwa Capital Markets reported.

So, overall producer prices are expected to rise 0.4 percent m/m, which might see the annual rate of inflation edge slightly higher to 2.0 percent y/y, while core PPI inflation (excluding food and energy) might be unchanged at 2.5 percent y/y. Meanwhile, in the markets, the Treasury will sell 30-year bonds, the report added.

Meanwhile, the S&P 500 Futures edged tad higher to 2,899.62 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -76.70 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex