U.S. Treasuries edge tad up ahead of 2-year auction, FOMC member Kaplan’s speech

The U.S. Treasuries edged higher during Tuesday’s afternoon session ahead of the country’s 2-year auction, scheduled to be held today by 17:00GMT and Federal Open Market Committee (FOMC) member Kaplan’s speech, also due to be delivered today.

The yield on the benchmark 10-year Treasury yield slipped 1 basis point to 1.780 percent, the super-long 30-year bond yield also fell 1 basis point to 2.275 percent and the yield on the short-term 2-year traded 1-1/2 basis points down at 1.601 percent by 14:15GMT.

Markets retain a ‘risk-on’ stance, with US equities nudging towards all-time highs and US yields, led by the long end, a little higher, while broad USD remains under pressure. This is seemingly on the continued positive comments around a US-China ‘phase 1’ deal, which could result in December tariffs being rescinded, according to US economic advisor Kudlow, Lloyds Bank reported.

Existing-home sales receded in September following two consecutive months of increases, according to the National Association of Realtors. Each of the four major regions witnessed sales drop off last month, with the Midwest absorbing the brunt of those declines.

The median existing-home prices for all housing types in September was $272,100, up 5.9 percent from September 2018 ($256,900), as prices rose in all regions. September’s price increase marks 91 straight months of year-over-year gains.

Meanwhile, the S&P 500 Futures remained flat at 3,010.38 by 14:30GMT.