U.S. Treasuries fall despite shaky investor confidence following Turkish turmoil; Russia to sell-off more debt holdings

The U.S. Treasury yields traded in green Monday despite money markets emerging in red following investor worries over Turkey’s political scenario, as the tussle with the U.S. gets going.

The yield on the benchmark 10-year Treasuries rose 1 basis point to 2.86 percent, the super-long 30-year bond yields jumped nearly 2-1/2 basis points to 3.03 percent and the yield on the short-term 1-year traded close to 1 basis point higher at 2.59 percent by 10:50GMT.

It’s all about Turkey again with today’s sessions already inevitably having brought additional major lira volatility after the weekend saw Erdoğan again exhort against rate hikes and blame foreigners for the country’s financial market stress.

According to media reports, Russia has planned to engage in greater U.S. Treasuries sell-off as a sign of retaliation against the new penalties to be imposed by the U.S. over the former in the foreseeable future.

In an interview with Rossiya 1 TV channel, Finance Minister Anton Siluanov said, "I do not rule it out. We have significantly reduced our investment in US assets. In fact, the dollar, which is considered to be the international currency, becomes a risky tool for payments".

Meanwhile, the S&P 500 Futures remained 0.30 percent lower at 2,828.25 by 11:00GMT, and at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 72.53 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex