U.S. Treasuries gain in muted trading ahead of 5-year auction, host of FOMC speeches

The U.S. Treasuries gained during late afternoon session Tuesday amid a muted trading session that witnessed data of little economic significance. However, the country’s 5-year auction and a host of FOMC speeches by members Evans, Bostic and George will provide further direction to the debt market.

Tomorrow, markets will likely witness the release of the Conference Board’s consumer confidence survey for November, alongside the FHFA and Case-Shiller house price indices for September.

The yield on the benchmark 10-year Treasuries fell nearly 1-1/2 basis points to 3.057 percent, the super-long 30-year bond yields traded 1 basis point lower at 3.310 percent and the yield on the short-term 2-year traded tad lower at 2.831 percent by 11:30GMT.

Policy-wise, Vice Chair Clarida, who recently suggested that policy should be data dependent is due to speak in New York, while in the markets the Treasury will sell 5-year notes.

US-China trade conflict remains one of the major market themes with investors eagerly awaiting the planned meeting between US President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 summit in Argentina on November 31 -December 1. Against this background, investors retain a cautious stance towards risk assets while core government bonds remain well supported.

Meanwhile, the S&P 500 Futures remained tad 0.28 percent lower at 2,662.50 by 11:40GMT, while at 11:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 59.59 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex