U.S. Treasuries suffer ahead of February employment report, FOMC members’ speeches

The U.S. Treasuries suffered Friday ahead of the country’s non-farm payrolls data for the month of February and the country’s unemployment rate for the same period, scheduled to be released today by 13:30GMT. Also, FOMC members Rosengren and Evans’ speech, due for today at 17:40GMT and 17:45GMT respectively will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries climbed 1-1/2 basis points to 2.88 percent, the super-long 30-year bond yields also rose nearly 1-1/2 basis points to 3.14 percent and the yield on the short-term 2-year too traded 1-1/2 basis points higher at 2.27 percent by 11:00GMT.

All eyes today will be on the February labor market report. Against the backdrop of a further decline in unemployment insurance claims and a larger-than-expected rise in the ADP employment figure seen earlier this week, the market consensus is for an increase in non-farm payrolls of 200k or so, close to its solid reading in January and a touch above the six-month average.

With regard to other major labour market indicators, after four consecutive months at 4.1 percent, the unemployment rate is expected to inch lower to 4.0 percent, which would be the lowest level since late 2000, while growth in average hourly earnings is expected to be a touch softer than in January, at 0.2 percent m/m and 2.8 percent y/y, Daiwa Capital Markets reported.

Meanwhile, the S&P 500 Futures rose 0.05 percent to 2,740.75 by 11:05GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 26.03 (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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