U.S. Treasuries slump after February producer price inflation rebounds; eyes on super-long 30-year auction

The U.S. Treasuries slumped during afternoon session Wednesday following a rebound in the country’s producer price inflation (CPI) data for the month of February, released today at 12:30GMT. Investors will now be looking forward to the super-long 30-year note auction, also due today at 17:00GMT for further direction in the debt market.

The yield on the benchmark 10-year Treasury yield rose 1-1/2 basis points to 2.620 percent, the super-long 30-year bond yields surged 2 basis points to 3.010 percent and the yield on the short-term 2-year traded nearly 1-1/2 basis points up at 2.467 percent by 13:00GMT.

The U.S. Producer Price Index for final demand edged up 0.1 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.1 percent in both January and December. On an unadjusted basis, the final demand index moved up 1.9 percent for the 12 months ended in February.

Further, the index for final demand less foods, energy, and trade services inched up 0.1 percent in February following a 0.2-percent advance in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services climbed 2.3 percent.

Meanwhile, the S&P 500 Futures edged tad higher to 2,803.62 by 13:05GMT, while at 13:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -51.52 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex