U.S. Treasuries gain ahead of 30-year auction, producer prices data

The U.S. Treasuries gained Wednesday as investors wait to watch the country’s 30-year auction, scheduled to be held today by 17:00GMT, besides, the producer price index for the month of August, due today by 12:30GMT will provide further direction to the bond market.

The yield on the benchmark 10-year Treasury skid nearly 1-1/2 basis points to 2.15 percent, the super-long 30-year bond yields also fell 1-1/2 basis points to 2.76 percent while the yield on short-term 2-year note traded flat at 1.34 percent by 10:50GMT.

Ahead of tomorrow’s all-important US consumer price data, today will bring August producer price inflation numbers as well as the federal government budget statement for last month.

Due to clear signals of the balance sheet reduction to start soon, it is widely expected that an announcement will take place at this meeting. The actual reduction will likely start from October, with the proposed 10 billion. USD per month. Elsewhere GDP-data has been strong, but hurricane effects will likely be negative in Q4. Inflation has remained low and will likely be monitored closely ahead of the December meeting.

Meanwhile, the S&P 500 Futures traded 0.15 percent higher at 2,489.50 by 10:55GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 65.64 (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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