U.S. Treasuries flat in muted trading; eyes on October consumer inflation data

The U.S. Treasuries traded flat Tuesday amid a silent trading day and as investors are awaiting the country’s consumer price-led inflation index, scheduled to be released on November 15 by 13:30GMT. Also, retail sales for the month of October due on the same day will provide further direction to the debt market.

The yield on the benchmark 10-year Treasuries neutral at 2.40 percent, the super-long 30-year bond yields slipped 1 basis point to 2.86 percent and the yield on short-term 2-year note traded flat at 1.68 percent by 10:40GMT.

It will be a similarly busy week in the US, with Wednesday’s retail sales and inflation releases for October taking center stage. 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. 

More inflation-related indicators will be released import and export prices indices will come out on Thursday alongside October industrial production. Among the survey data, we will receive the Empire State manufacturing business conditions (Wednesday) 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 6.56 (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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