U.S. Government bonds rise modestly ahead of Yellen’s speech

The U.S. Treasuries were pushed higher across much of the curve during a relatively quiet Monday session as investors await the Federal Reserve Chair Janet Yellen’s speech in an attempt to estimate the central bank's most likely policy step.

The yield on the benchmark 10-year Treasury note fell 1 basis point to 2.58 percent and the yield on short-term 2-year note dipped 1- 1/2 basis points to 1.24 percent by 12:00 GMT.

The Federal Open Market Committee increased the fed funds rate to a 0.50-0.75 percent range last Wednesday, as widely expected. The statement noted that information received since the November meeting indicates that the labour market has continued to strengthen and that economic activity has been expanding at a moderate pace since mid-year.

Also, the new projections showed that the central bankers expect three quarter-point rate increases in 2017, up from the two seen in the previous forecasts in September, based on median estimates.

Markets now look ahead to a lighter flow of data in the week ahead, highlighted by durable goods orders and final Q3 GDP releases on Thursday. Additionally, there is also a 5-year TIPS reopening on Thursday.

Meanwhile, the S&P 500 Futures traded 2.25 points higher at 2,257 by 12:10 GMT. While at 12:00 GMT, the FxWirePro's Hourly Dollar Strength Index remained highly bullish at +149.71 (higher than +75 represents a bullish trend).