U.S. 10-year Treasury hovers around 3 pct mark ahead of key FOMC policy meeting, July ADP non-farm employment change

The U.S. 10-year Treasury hovered around the 3 percent mark, with yield slumping to as low as 2.934, a level last seen on July 24 ahead of key central banks’ meetings throughout this week, including the Federal Reserve. Also, the ADP non-farm employment change data for the month of July and the ISM manufacturing PMI for the same period, both scheduled to be released on August 1 by 17:45GMT and 19:30GMT respectively will add further direction to the debt market.

The yield on the benchmark 10-year Treasuries fell 2-1/2 basis points to 2.94 percent, the super-long 30-year bond yields plunged nearly 3-1/2 basis points to 3.07 percent and the yield on the short-term 2-year traded nearly 1 basis point lower at 2.66 percent by 11:35GMT.

It will be a busy day for the US major economic releases. Personal income and consumption data for June, expected to show increases of around 0.4 percent m/m on both sides of the ledger, will be at the centre of attention, but the employment cost index will also be very noteworthy.

Wage growth will have probably eased from the 0.9 percent q/q pace in Q1, while growth in the non-wage component will most likely exceed its recent average of 0.7 percent q/q, so the overall index should be little changed from 0.8 percent q/q rate of growth at the start of the year. Among other releases, the Chicago purchasing managers’ index, the Conference Board consumer confidence survey, and the Case-Shiller home price index will be worth watching too, according to the latest research report from Daiwa Capital Markets.

Meanwhile, the S&P 500 Futures remained 0.22 percent higher at 2,809.25 by 11:45GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bearish at -83.92 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex