U.S. Treasuries ahead of Q2 GDP data, FOMC member Bullard’s speech

The U.S. Treasuries steadied Friday, as investors wait to watch the country’s gross domestic product (GDP) for the second quarter of this year, scheduled to be released today by 12:30GMT. Also, due today is the Federal Open Market Committee (FOMC) member Bullard’s speech, which shall add further direction to the debt market.

The yield on the benchmark 10-year Treasuries hovered around 2.97 percent, the super-long 30-year bond yields slipped 1/2 basis point to 3.09 percent and the yield on the short-term 2-year traded 1 basis point lower at 2.67 percent by 10:50GMT.

After a relatively modest increase in GDP at the start of the year of 2.0 percent q/q annualised, expectations are for a sharp acceleration. Indeed, a reading around 4-1/2 percent q/q annualised, would not be a big surprise. But the latest figures, including slightly disappointing June trade and inventory data, suggest that risks to this estimate are skewed to the downside, Daiwa Capital Markets reported.

Nevertheless, net exports are still set to provide a significant positive contribution, while other major components, private consumption and fixed investment, should also add to growth. Among other announcements, the University of Michigan Consumer sentiment survey will be most notable.

Meanwhile, the S&P 500 Futures edged 0.07 percent higher to 2,844.75 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 90.33 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex