U.S. Treasuries edge higher after Trump’s Inaugural speech, investors eye Q4 GDP data

The U.S. 10-year Treasuries edged higher Monday as markets opened first time after the country’s President, Donald Trump’s Inauguration ceremony was held on Friday, where he favoured the policy of protectionism, sending yields lower than before.

Also, investors remain keen to focus on the upcoming fourth quarter gross domestic product (GDP), scheduled to be released on Friday.

The yield on the benchmark 10-year Treasury fell 1/2 basis point to 2.46 percent, the super-long 30-year bond yield remained flat at 3.04 percent and the yield on short-term 2-year note moved 1 basis point lower to 1.18 percent by 12:00 GMT.

President Trump in his speech said that adoption of the policy of protectionism will lead to great prosperity and strength and that he will fight for it thoroughly, putting his country on the top priority every time. He further added that every policy from now on will be directed solely to benefit the Americans at first.

"Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs," ANZ reported, citing Trump’s original speech.

Lastly, in terms of economic data, today is a silent market with auctions scheduled for short-term maturities only. However, market participants remain awaited on a host of other key economic events, scheduled by end of this week, including Q4 GDP.

Meanwhile, the S&P 500 Futures traded 3.50 points or 0.15 percent lower at 2,262.50 by 12:20GMT, while at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 53.39 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex