The U.S. Treasuries saw mixed performance during a relatively quiet Wednesday session that witnessed data of little significance.
The yield on the benchmark 10-year Treasury note fell 2 basis points to 2.37 percent, the yield on long-term 30-year Treasury also dipped 2 basis points to 3.06 percent and the yield on short-term 2-year note bounced 1/2 basis point to 1.11 percent by 12:00 GMT.
The October US Commerce Department trade balance report recorded upward pressure in the deficit to USD 42.6 billion, as compared to the revised USD 36.2 billion result that occurred in September (previous was USD 36.4 billion), just above expectations for a –USD 42.0 billion deficit result.
Markets now look ahead to another data-light session on Wednesday, highlighted by consumer credit data, which should maintain its strong run of gains.
However, we expect with little of great note between now and next week’s meeting that Treasuries are likely to maintain recent ranges as markets look to see how interested the Fed is to continue along a gradual path higher as we move into 2017.
Meanwhile, the S&P 500 Futures traded flat at 2,209 by 12:30 GMT. While at 12:00 GMT, the FxWirePro's Hourly Dollar Strength Index stood neutral at -43.57 (lower than -75 represents bearish trend).
