U.S. Treasuries steady as investors await May employment report

The U.S. Treasuries steadied during Friday’s afternoon session, ahead of the country’s employment report for the month of May, comprising of non-farm payrolls and unemployment rate, scheduled to be released today by 12:30GMT respectively, amid an otherwise, muted trading session that witnessed data of little economic significance.

The yield on the benchmark 10-year Treasury yield traded nearly flat at 2.126 percent, the super-long 30-year bond yields hovered around 2.619 percent and the yield on the short-term 2-year traded nearly 1/2 basis point lower at 1.876 percent by 11:45GMT.

Expectations are for a slowdown in nonfarm payroll growth from 263k in April to close to 180k (Daiwa America forecast 160k). And the private sector ADP figure (just 27k) suggests that the risks might be skewed to the downside, Daiwa Capital Markets reported.

Further, the unemployment rate might tick up 0.1ppt to 3.7 percent due to an increase in the labour force, while the annual rate of growth in average hourly earnings is expected to remain unchanged at 3.2 percent y/y. Wholesale trade and inventories data for April are also due, the report added.

Meanwhile, the S&P 500 Futures traded tad 0.30 percent higher at 2,854.38 by 11:50GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -35.76 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex