U.S. Treasuries surge ahead of October CPI, Fed Chair Powell’s speech

The U.S. Treasuries surged during Wednesday’s afternoon session ahead of the country’s consumer price inflation (CPI) for the month of October, scheduled to be released today by 13:30GMT.

In addition, Federal Reserve Chair Jerome Powell is due to deliver a keynote speech, also today by 16:00GMT, besides, a speech by FOMC member Kashkari, due at 18:30GMT, which shall provide further direction into the debt market.

The yield on the benchmark 10-year Treasury yield slumped 3 basis points to 1.877 percent, the super-long 30-year bond yield also suffered 3 basis points to 2.355 percent and the yield on the short-term 2-year traded nearly 2 basis points lower at 1.632 percent by 11:30GMT.

In the US, today will bring several noteworthy events, including Fed Chair Powell’s testimony on the economy before the Joint Economic Committee, which will be closely watched for any new insight into the near-term monetary policy outlook. Continued criticisms from Donald Trump, which were repeated yesterday as the President again called for negative rates from the Fed, are also likely to be discussed, Daiwa Capital Markets reported.

Data-wise, October’s CPI release is expected to show that despite an anticipated pickup in prices of 0.3 percent m/m, which would be the most in three months, the annual inflation rate moved sideways at 1.7 percent y/y, the report added.

Core CPI is also expected to be firmer than in September, up 0.2 percent m/m, which would similarly leave the headline rate moving sideways at a firmer 2.4 percent y/y. Finally, the House of Representatives will convene its first public impeachment hearings into the activities of the President, Daiwa further noted in the report.

Meanwhile, the S&P 500 Futures remained tad -0.39 percent down at 3,079.62 by 11:35GMT.