The U.S. Treasuries climbed Wednesday as investors wait to watch the country’s consumer price-led inflation index (CPI) for the month of October, scheduled to be released today by 10:00GMT. Also, retail sales for the month of October due today by 13:30GMT, will provide further direction to the debt market.
Lower fuel prices are likely to put some downward pressure on the headline CPI rate, which is expected to ease from the 2.2 percent y/y pace in September, however, the core rate should remain steady at 1.7 percent y/y for a sixth consecutive month.
The yield on the benchmark 10-year Treasuries plummeted 4 basis points to 2.34 percent, the super-long 30-year bond yields also nose-dived nearly 4 basis points to 2.80 percent and the yield on short-term 2-year note traded 2-1/2 basis points lower at 1.66 percent by 10:40GMT.
With regard to the retail sector figures, while a surge in vehicle sales in September means that a payback in this category is on the cards in October, the weakness at least to some extent might be offset by continued rebuilding after the hurricanes in September, to leave the value of sales may be only slightly lower on the month.
After a big increase in the previous month, retail sales are likely to have eased back a little. Meanwhile, the headline CPI rate looks set to have moderated from 2.2 percent y/y in September, but the core rate is likely to have remained unchanged.
Among the survey data, we will receive the Empire State manufacturing business conditions today and the Philadelphia Fed Business outlook (Thursday) surveys. And there will be a number of Fed speakers in the coming week, including voting members Yellen, Evans, and Kaplan.
Meanwhile, the S&P 500 Futures traded 0.12 percent down at 2,578.75 by 10:45GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -29.74 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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