U.S. 10-year Treasury yield retreats from 3 pct mark despite hawkish Fed as renewed trade tensions weigh on

The U.S. 10-year Treasury yield retreated from the 3 percent mark reached in the overnight trading session, but remained on the downside during Thursday’s session, despite a hawkish outlook from the Federal Open Market Committee (FOMC) in its latest monetary policy meeting.

Renewed trade war tensions between the U.S. and China, with President Donald Trump increasing the trade tariff to 25 percent on USD200 billion of Chinese goods, compared to the previous 10 percent attracted investors toward safe-haven assets, thus raising the price of government bonds.

The yield on the benchmark 10-year Treasuries slumped 2-1/2 basis points to 2.97 percent, the super-long 30-year bond yields also plunged nearly 2-1/2 basis points to 3.10 percent and the yield on the short-term 2-year traded close to 1-1/2 basis points lower at 2.67 percent by 11:30GMT.

In the US, ahead of Friday’s payrolls, factory orders data will be released today. They will probably signal that manufacturing momentum should remain decent in the near term. Following a 0.4 percent m/m rise in May, orders likely to have risen at a slightly higher pace in June, according to the latest research report from Daiwa Capital Markets.

Meanwhile, the S&P 500 Futures remained 0.53 percent lower at 2,785.75 by 11:35GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 52.77 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex